Market closed at 1096.48, up 1.31 points, we had an early sell off followed by a late day rally. I didn't sell my SPXU because I set my sell limit order at S&P 1075, just 5 points shy of daily low 1080. Too bad I didn't get this 18 point daily range gain. Market seems want to go up some more.
It looks to me that somebody was controlling the last hour trading. It is really difficult to properly analyze a market that continually receives Fed support during options expiration week when the Fed pumps money into the system, an indirect support of the stock market.
If you look at the chart of the recent rally, you will see that the volume is very weak. A healthy rally should accompany with high volume.
Right now I am looking for a retractment to 1075, 1067 and 1055. I will cover my short at 1075 and 1067, and I will long the market if it hit 1055 and rebound.
Market's Momentum is strong in the mean time, there is probability for it to test 200 days moving average at 1112 or 1115 which is the 50% fib level from 1220 high to 1010 low.
I see there are two ways the market will go, it may break through 1100 and heading to 1112 and 1115, or it will consolidate between 1100 and 1080 for a while and break out later. You can see that 1100 now is critical resistance to stop this rally to march.
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