overall market outlook, gap analysis, trade expectations
Coming into today bulls are getting their chance to take the baton and run this market higher. We had a real negative looking close yesterday however the bulls case is such that we put in an intermediate term double bottom and it is time to see what kind of legs this bounce can get. I am real suspect of it and I believe this is a chance to sell some longs into strength or establish/add on to short positions.
Almost a full percent gap up this morning, I am not getting behind this to chase. I would however be surprised if we filled this today. I think we can do a little filling today but overall I am not leaning heavy to either direction. I will be looking for scalps to the long and short side.
I am expecting quiet choppy action. We are still in an environment of two-way trading which means it is not the time to remain stubborn in your trade ideas. It is time to be nimble. The pro of being a bull right now is your risk is clearly defined, losing yesterdays lows of 140.80 is your signal to step asside.30-Minute key SPY levels
- $SPY support at 141.70. Yesterday intraday support.
- $SPY support at 140.80. Intermediate term support with double bottom. If we cut through this the selling momentum will accelerate.
- $SPY resistance at 142.5. Previous support, pivot lows on larger time frames.
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