overall market outlook, gap analysis, trade expectations
Overall yesterday we had some weak market price action. The opening prices were the highs and the market saw continued selling all the way back down to gap fill and once again bang against the 140.80 lows. We are still holding this recent critical zone of 140.8-141 but for how much longer? The more we come down and test this area the less likely we will find buyers when we arrive. We need to get out of this zone to get some directional certainty, below 140.8 or above 142. Until we do, expect continued chop back and fourth within this point and a half trading range. $AAPL reported yesterday and the street seems to be giving it a pass on the slight miss of Q3 numbers. Perhaps with that uncertainty out of the way markets can resolve out of this range over the next day or so.
Scalps–until we resolve one way or the other I will not be looking for breakouts/breakdowns to work. In and out.30-Minute key SPY levels
- $SPY support at 140.8. intermediate term critical support level to hold. It is more this 25 cent zone or so that we continue to pivot off of.
- $SPY resistance at 141.6. intraday level of importance over the past few days, what was support becomes resistance.
- $SPY resistance at 142.1. intermediate term ceiling this market has not been able to claw above.
- $AAPL – looking for opportunities to purchase long and sell short. After its earnings last night this stock should be in play today. 612 to the upside is the first hurdle meanwhile we have support about 605 and 600. I will be looking for opportunities on both sides.
- $AMZN – looking for opportunities to purchase long. Initially the street sold off amazon on their miss afterhours yesterday, since then it has clawed all the way back to above yesterdays close. In play, favoring long side.
- $PCLN – looking for opportunities to purchase long. Expedia reported yesterday after the bell which gave a nice pop to priceline. In play to the upside today, above 575 should get a 595-600 retest.