SPX pulled back on Friday for a second consecutive day, albeit barely.
Most impressive was the pullback to the 5-day moving average on SPX and SPY and the immediate bounce thereafter.
Volume was incredibly light on Friday, though higher than what we saw on Thursday, it was still below average readings.
SPX is poised to breakout and confirm the double bottom move by establishing a higher-high in the market for the first time since 12/29.
This bottom is showing signs of being similar to that of what we saw in late September of last year when the market bottomed for a second time then went on a monster rally thereafter.
SPX 30 minute chart has put together a bull flag pattern that it will likely confirm at the open today.
The 50-day moving average could be in play today, and may be a point of resistance for the market. It hasn’t had a true test since last December.
VIX continues to deteriorate and despite another day in the red for SPX, VIX continued to melt away, dropping 5.1% down to 20.53. Today’s open will likely drop it below that pivotal 20 level.
Also worth noting on the VIX was the fact that it broke the support level at the 50-day moving average and rising support off of the late December lows.
T2108 (% of stocks trading above their 40-day moving average) held strong remains at the 40% level with a strong bullish tilt to it.
Watch for whether USO can break the down trend off of the November highs. It is poised to test this resistance level again 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:
Added two new long positions to the portfolio yesterday.
Did not close out any swing-trades.
Currently 20% Long, 80% Cash
Will look to add 1-2 new positions to the portfolio with a trending market to the upside.
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