With yesterday's solid performance and decent close it seemed reasonable we may see more of a push towards SPY 200's. Instead we reversed in the lower part of the resistance zone. Given the recent morning weakness has been bought, did that keep rationale bears from adding & building new positions?
The two pivot levels in the S&P 500 futures i'm watching are 1940 and 1970.
This chart of the futures shows how little push into the resistance zone we actually had. That's not what bulls want to see.
There was plenty of previously constructive price action taken to the wood chipper today. That seems like a deterrent to any near term snap back rally.
ETF's EEM, SOCL and IGV essentially tell that story as strong short term trends continue lower.
IGV 50 day moving average was treated as a speed bump.
The SOCL 200D MA turned into a brick wall overnight.
We're starting to approach some support in EEM,but oversold didn't provide much of a bounce earlier in the week.
Plenty of folks may mention how strong the downside breadth was today, via 80% or 90% down days. It's possible today was a near term selling climax.
If you missed last weekend's recap, check it out. There are plenty of signs out there saying things aren't as pretty as they have looked. On time frames longer than a few days, it's not a great investing environment.
Last week my pal Jordan @thetechnicalroom shared this chart on seasonality:
As you can see, this is a disgusting three weeks or so to be long stocks. To me, it's a great time to enjoy the amazing fall weather, pick your spots and relax. There will be plenty of opportunity into Q4 as career risk cranks up into a blazing inferno.
If you haven't noticed, there's a new quote up from the great philosopher Walter White.
As the market speeds up, our emotions can swing wildly. DO NOT FORGET, YOU are the danger to your wallet.
Trade 'em well!
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