SPY saw a strong gap up yesterday but remained essentially flat the rest of the day, with minimal upward momentum.
Volume on SPY was atrocious, well below average, and nearly as weak as the levels seen last Thursday.
SPX broke the closing highs from 1/29 but finished just a couple of points underneath the intraday highs of 1947, which would have established a new higher-high.
The 50-day moving average also looms large on SPX at 1951, and will likely come in at around 1948 at the open today.
If SPX can break through the 1947 area, there seems to be a good chance of seeing it rally back up to resistance at 1990-ish.
The 30 minute chart of SPX shows that 1947 is a strong level of resistance and now has price bull-flagging just below the resistance level.
VIX sold off for a sixth consecutive day and is now below the pivotal 20 level at 19.38. The meltdown continues in a similar fashion to what was seen in October 2015.
T2108 (% of stocks trading above their 40-day moving average) keeps chugging higher, rising another 20% to 47.85. The highest reading since 12/1.
USO closed right on the downtrend off of the November highs. It’ll be critical for USO to push through this area and establish a clear break in the downtrend today.
Insane price movements every day being created by computer generated trading (HFT’s) in a highly volatile market marked with enormous headline risk.
My Trades:
Closed KMT out yesterday at $19.81 for a 2.9% profit.
Added two new long positions to the portfolio yesterday.
Currently Long FB at $104.46.
Currently 30% Long, 70% Cash
Will look to add 1-2 new positions to the portfolio as long as the current uptrend is not compromised.
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