Third straight significant rally on SPX yesterday, and the first time since October 2011 that it has rallied over one percent on three consecutive days.
Pre-market the futures are up yet again, and could test key resistance at 1947 which, if broken, will create a higher-high for the market for the first time since late December.
Volume continues to trend very lightly over the last three days and well below average.
SPX established a higher-high on the 30 minute chart, but like the daily, will face a major test of overhead resistance at 1947.
Another outstanding day for the T2108 (% of stocks trading above the 40-day moving average) where it rallied 29% to 40, which is the highest reading since 12/4/15.
VIX rising trend-line that started at 12/23/15 is being tested coming into today. If this holds, could result in some profit taking for the market.
One of my big concerns toward this market is the fact that bottom was formed on a suspect headline and that kept the market from ever really seeing a true flush or panic moment for the market.
Oil continues to rocket higher with another day of +8% gains yesterday, and up another +2% to start 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 one new swing-trade to the portfolio yesterday.
Currently 10% Short, 90% Cash
Careful not to play catch up with a rally that has been extremely difficult to get on board with considering its timing around the recent 3-day holiday weekend.
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