Technical Outlook:
- Massive rally on Friday continued the afternoon bounce that was seen on Thursday and looks to continue on again today.
- Friday's bounce had the look and feel of a dead cat bounce to it, especially considering that the volume was insanely low on Friday and well below any of the readings that has been seen so far this month.
- Last volume reading that was this low was on 1/5 which was also a dead-cat bounce.
- Be careful with trying to get heavily long at this juncture. The bounce appears very suspect at this point.
- Resistance on SPY can be found (short-term) between $187-188 area.
- Oil is poised to open higher but has gradually been slipping lower throughout the morning.
- Still you have a double bottom in play on the daily chart and made even more clear on the 30 minute chart.
- SPX reclaimed the 5-day moving average which is the first step in building a longer sustained rally going forward.
- A 9.8% drop in VIX yesterday down to 25.4 and off of the recent highs.
- Massive increase on T2108, bouncing 35% up to 23.01.
- Since making highs on February 1st, the 30 minute chart has formed nothing but lower-highs since. SPX will be looking to establish the month's first higher-high on this time frame.
- Insane price movements every day being created by computer generated trading (HFT's) in a highly volatile market marked with enormous headline risk.
- There is a lot of stop-loss hunting out there in the market, and being agile with getting in and out of positions quickly has been extremely important.
My Trades:
- Covered SPY on Friday at $185.20 for a 0.9% profit.
- Covered QQQ on Friday at $97.30 for a 1.3% loss.
- Did not add any new positions on Friday.
- Currently 100% Cash
- I want to see whether this market can hold the current gains since Friday or whether there will be a fade that provides me with an opportunity to short. I'm open to trading in either direction.
Chart for SPX:
Comments
Log in or sign up to join the conversation.