BMO – ES -27.50 and NQ -38.50 futures are lower about 20 minutes before the open in pre-market trading and point to a lower open…negative reaction to European debt fears took futures lower on Monday…volume is heavy for pre-market with more stocks quoting down than up…Financial stocks, XLF is down 41 cents on 798,300 shares in pre-market at this time…
TLT is up 1.74 and the Euro is down 29 pips in premarket trading…
NDX leaders AAPL, AMZN, BIDU, GOOG, NFLX, PCLN and QCOM are quoting lower in pre-market trading…
Dave’s Insight for Tuesday: Posture turned bearish on Friday after bearish engulfing patterns appeared on the indexes on Thursday…Futures fell on Monday after Asian and European stocks moved lower…The S&P has fallen deep into the 1,100 to 1,200 price channel…Take the trade according to your rules…Remember that gaps have a tendency to at least partially fill…It will be interesting to see if US traders follow the global selloff or if they will look at these lower prices as an entry opportunity…Trade with the short term trend…Watch XLF as a key factor in any SPX move up or down…
SPX
Resistance: 1,200, 1,225, 1,235
Support: 1,177, 1,160, 1,146, 1,134
Quoting Down – ISRG, PCLN, GOOG, AAPL, CMG, CRM, CF, SINA, GMCR, GS, WLT, IBM, CLF, CAT, LNKD, UNP, SLB, FFIV, DE, MOS, SOHU, UCO, HLF, NKE, COH, TIF, URE, MCP, POT, HAL, VL, ANF, FCX, LVS, C, SNDK, FAS, ANR, RCL, RVBD, GES, CREE, ZION, CHL, X, STI, DOW, ARUN, TBT, PCX, SMH, SWKS, ZAGG, SLW, KDSUM, UAL,CDE,NVDA, CIEN, JNPR, CROX, GLS, F, WYNN, NFLX, AMZN, BIDU, BIIB, CTSH, ILMN, FFIV, JOYG, PCAR, CTXS, FSLR, CERN, SNDK, KLAC, ALXN, QCOM, BRCM
3 comments:
Dear Dave,
I drew a fib on SPY starting at the low of 8/29 to the high of 8/31, today's open gapped down to 161% level and bounced off of it. Interesting.
Steven R.
from Steven R. ...
So on the SPY candle of today (vs. Friday). Is today's candle bullish or bearish. On the one hand it could be bullish because it is almost a solid white candle. On the other hand it could be bearish because it gapped down from the open and never filled the gap? Which do you like better?
Oh and SPY did close down for the day in spite of the strong white candle.
from Steven R.
Regarding the SPX vs SPY chart: I notice that index charts (SPX) don't have gaps and the SPX has formed a nice hammer for today, but the SPY which does show gaps, shows a solid white candle but much lower than Friday's candle. Which is more useful?
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