S&P 500 (SPX) reversed Tuesday’s rally and closing at the same price level SPX closed Friday at.
The volume on SPDRs S&P 500 (SPY) increased yesterday when compared to the day prior, and more than double the daily average.
The daily bands on the market continue to expand after exhibiting historical tightness, and price has traded outside of them on SPX for the last two days.
Nasdaq (QQQ) managed to hold the 50-day moving average and didn’t show near the weakness as the rest of the market, due to preorders of the iPhone 7 being up 375% so far – creating a huge rally for Apple (AAPL ).
CBOE Market Volatility Index (VIX ) rallied almost 18% yesterday and finished the day above Friday’s close at 17.85. Downtrend off of the February highs suggests it could rally to 24 before experiencing any resistance.
Some strength heading into the open this morning. If the SPX strength fades, as it very well could, there is an immediate test of the rising trendline at around 2102 area.
2120 represents key support for this market as it has tested and held on to it the last two trading sessions. It also marks a long-term pivot level of support/resistance.
Russell (RUT) showing increased weakness, with a break of the 50-day moving average and a close below Friday’s lows.
SPX 30 minute chart shows the potential for a double bottom to come into play.
Crude (/CL) continues to reverse the recent gains. A break of the 9/1 lows will likely take it back to the critical lows established in early August.
My Trades:
Added three additional short positions yesterday.
Sold NFLX yesterday at $97.29 for a 1.2% loss.
Remain short: TGT at $70.30, T at $40.63.
May add 1-2 new swing trades to the portfolio today.
Will consider adding new long positions to the portfolio if the market shows signs of putting together a possible bounce.
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