After opening lower and finding support, the SPX traded in an 18 point trading range between 1,131 and 1,148 the rest of Thursday, closing down -53.24 at 1,140.65.
Interest rates TNX 20.83 hit an all-time low on Thursday sending financial stocks XLF -0.63 lower. Fear again took charge as U.S.
Posture turned bearish as the Market Forecast Green Line turned down.
There is both a potential double bottom and MACD histogram bullish divergence forming on the SPX and other broad indexes. The 1,100 level is a very important support level to say the least.
(click image to enlarge)
NDX gap down large black candle, below 30 DMA -4.98%
SPX doji gap down large black candle, below 30 DMA -4.46%
INDU gap down large black candle, below 30 DMA -3.68%
COMPQ gap down large black candle, below 30 DMA -5.22%
RUT gap down large black candle, below 30 DMA -5.90%
Breadth weakened as decliners led advancers 16.38 to 1 on the NYSE and 10.00 to 1 on the NASDAQ …
Exchange NYSE NASDAQ
Advancers 178 240
Decliners 2,916 2,400
Index Change Close Direction Confirmation
VIX +11.09 42.67 Up Yes – SPX
SOX -20.87 332.23 Down Yes – COMPQ
Leading stocks > +2% on Thursday FAZ, SINA, TLT
SPX
Resistance: 1,146, 1,158, 1,170
Support: 1,134, 1,119, 1,103The short term 3 day trend is down.
The six-month trend is down.
The twelve-month trend is neutral.
Trade with the trend of the chart you are trading.
Bullish entry signal is a bounce off support and a break above the high of the low day or a break out of horizontal resistance.
2 comments:
Great session last night on AT Cap. Thanks for detailing your daily routine!
Dave, Lots of BGOs in last nights session which unfortunately I could not attend live. The new ideas on altering spread trades was very useful. Thanks you.
Also I loved your obstetrician story to which I could relate to. It reminded me to trade the way I do surgery as you told me at a meeting last year.
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