This is a recap of our trading today. This is exactly what our members received in real-time: Enjoy
Good Morning!
The market is headed for a higher open following yesterday’s sell off. Overnight the S&P futures traded in an 11 point range which means we should expected heightened volatility this morning.
Notice that the Dow managed to close just above its 50 day moving average (support) yesterday. This is going to be the key area of focus this morning. This market loves to fade the gaps so we’ll need to be on the alert of another possible pullback sometime in the first hour of trading.
There are no economic reports scheduled this morning so we’ll look to the top of the hour for guidance.
SP Futures +2 and Nasdaq Futures +3.
See you in a bit.
OEX Key Levels chart has been updated.
You Should Label Your OEX Chart With the Following Numbers
586.50 Calculated Intraday High
585.50
584.50 Areas of Resistance
583.50 Pivotal Area Separating Support/Resistance
582.50 Areas of Support
581.50
580.50 Calculated Intraday Low
************
6.00 Points – Today’s Calculated Range
0-10 points – Average Trading Range
10-15 points – Expect Large Swings
15+ Points – Extremely volatile
We certainly have not seen the kind of volatility you’d expect given the price action from yesterday’s session. Have you been monitoring the OEX 60 minute chart that I discussed yesterday? The RSI once again did a great job of calculating the swing low. Keep in mind that these types of support levels are typically short term in nature. The declining 5-day moving average (resistance) on the OEX is currently 586 so I suspect the upside at this point is limited.
Perhaps the algorithms will engage and we’ll see a break one way or another…
Still flat.
Stay tuned.
Here’s an update on the OEX 60-minute chart.
You can see that it’s reached the declining 5-day moving average (resistance).
The market is being artificially inflated due to earnings I believe. I suspect we’ll see a retracement in this area considering the accuracy of these indicators.
As you know, I do not use a lot of indicators. The ones that I do use have a high success rate. Everything is just churn in my opinion.
Tick tick tick… the market just keeps rising.
Fear! What fear?
The VIX is down 9% today and is about to set a multiple month low. By the way, the VIX moves opposite of the market (generally). This kind of read signifies significant complacency.
Still flat.
Stay tuned for more Futures Trading
Closing Bell
Fear Not! This market wants to go higher at all costs. I’ve said it so many times – but inflation is knocking on the door and Wall Street prices these things in well before they hit Main Street. Just take a look at Gold and Silver. These brainless news reporters are touting that they’re in a bubble.
What bubble?
The Dow Industrials and every other index is priced in U.S. dollars, right?
Go price the Dow Industrials in Gold and see the difference.
These are not bubbles. These are accurate reflections of true conditions.
The stock market is up over the past two years but individual wealth is down. Yep, must be a bubble
Have a good evening and see you tomorrow morning.