Morning Market Analysis 10-19-16

The following is an excerpt from our daily e-mail delivered to premium subscribers.

• Recent Momentum

  • Neutral

• Short Term* Outlook

  • Choppy

• Long Term* Outlook

  • Trend is bullish, dips = opportunity

*Short Term = 1 week, *Long Term = 1+ months.

Market Environment

A quiet and flat open today and so far we’ve traded entirely inside of yesterdays range.

Breadth: Another positive day with about 65% of stocks advancing versus declining. 

We were using SPY 214 as our line in the sand for the bears to hold us under in order to maintain momentum on their side and we saw that level get challenged yesterday and again here this morning.

We’re also seeing a positive tick up in breadth for the second day in a row as well as a VIX that continues to unwind.

All of these are signs of stabilization taking place at the bottom end of our larger structural range of SPY 212 – 217.

It’s not an all clear sign to load the boat, but buyers are firming up their case.

Notable Movers: Energy and Financials are leading us higher on the day.

We Go On To Discuss:

• Our positioning and strategy moving forward.
• Setups we’re interested in.
• Overview of open trades.

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