The S&P 500 Index settling for a tiny loss of 0.4 point, closed at 1124.66. Tomorrow, the SPX will have another chance to challenge the resistance at 1130 again which has capped its progress since June.
Stocks struggled to find direction today. Indexes had been down slightly for most of the day, but they rose modestly in the last hour of trade.Volume has been low, conviction has been low, there is still a lot of uncertainty in the market, so it’s hard to take a stance one way or another. That is going to be a catalyst for equities to improve.
Stocks have drifted in the trading range 1115-1130 last few days, Data aren't pushing us one way or the other. However, consider this is the consolidation after a rally, and today we stalled up near the 1130 level again, I believe a breakout from 1130 will makes sense to me. Be cautious, even the market breakout 1130, it may retract under it right away, we call it fake breakout. There is no way for traders or investor to chase this market provided the current overbought level. As I told you in yesterday post "I will highly suggest you to lighten your long exposure from now on and on the way up of this rally".
Tomorow, September options expire, which could result in a quick but short-lived rally. Use all rallies as an opportunity to sell.
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