Today marked the 3rd straight day that the longs came knocking at the SPX 1200 door. This time they got it cracked and when they saw there wasn't mad short covering taking place on the other side, they closed the door and price came right back in to that first level support of 1192 which is about where they closed them.
The NASDAQ kissed the underbelly of its 50 day moving average and the DJIA fell just shy of that 10450 area that we were looking at a shorting opportunity from.
1180 SPX is critical to the market now and if they want to test the bulls once more, that's the area were the bullish resolve will come forward if 1190 gives way. Internals were weak again today and volume was up again on a down day. In short, there was no pretty dress put on an ugly face today. They tried but when it didn't hold, they scrambled and decide to wait for another day.
All of this so far is the up and back that takes place when a market is trying to find it's footing and climb the wall of worry. Tomorrow could bring some downside follow through early and we'll have to watch for that weakness out of the gate most likely. Technically we are still OK but the test is coming for bullish resolve and it could be as soon as tomorrow. I'm considering a spread short after hours here for some protection as I did not like the close at all.
The NASDAQ kissed the underbelly of its 50 day moving average and the DJIA fell just shy of that 10450 area that we were looking at a shorting opportunity from.
1180 SPX is critical to the market now and if they want to test the bulls once more, that's the area were the bullish resolve will come forward if 1190 gives way. Internals were weak again today and volume was up again on a down day. In short, there was no pretty dress put on an ugly face today. They tried but when it didn't hold, they scrambled and decide to wait for another day.
All of this so far is the up and back that takes place when a market is trying to find it's footing and climb the wall of worry. Tomorrow could bring some downside follow through early and we'll have to watch for that weakness out of the gate most likely. Technically we are still OK but the test is coming for bullish resolve and it could be as soon as tomorrow. I'm considering a spread short after hours here for some protection as I did not like the close at all.
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