Early signs of buyers

overall market outlook, gap analysis, trade expectations

Friday we saw the market stop the recent downward selling pressure ever since the elections and close in the green. It would have been even better had the markets closed at 1pm since we were nearly 15 handles higher in the SPX cash market but nonetheless the buyers efforts were there. Overall I believe we will see some two-way trading today in a balanced type environment with a bias to the upside. I will be looking for some range bound setups if we can carve out clear ranges on some of these stocks and indices looking to fade directional moves (unless we get a clear change of character break above yesterday high/low of day etc).

Small gap up, coming into the open. If this continues into the first half hour I will probably look for signs to fade the opening strength around the SPY 139 mark looking for some sideways action to ensue.

Trade expectations will be mostly scalps and ‘one legged’ moves if we do see the back and forth action. I will also be watching for stocks that are breaking above or below Fridays low/highs for directional moves, still with modest trade expectations unless this market picks a direction and goes.

30-Minute key SPY levels
  • $SPY support at 138.13. intraday support zone from yesterday and the close, also thursdays low and close price under this and we likely retest the
    low from friday at 137.53.
  • $SPY resistance at 139.05. minor intraday resistance and some previous built up structure..
  • $SPY resistance at 139.45. minor resistance, Fridays highs and the golden ratio retrace from the last leg down.
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Evan Medeiros

Evan is the founder of The Trade Risk, a financial media company specializing in technical analysis and trading education. With 20 years of coding experience and a B.S. in computer science, Evan brings a systematic discipline to analyzing the stock market.

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