Morning Market Analysis 9-26-16
The following is an excerpt from our daily e-mail delivered to premium subscribers.
Short Term* Outlook
- Choppy, battle for control
Long Term* Outlook
- Trend is bullish, dips = opportunity
*Short Term = 1 week, *Long Term = 1+ months.
A second consecutive gap lower this morning and this time we’re falling back beneath (re-testing) key prior resistance we broke out above following last weeks FOMC meeting.
Breadth: Favors the sellers once again as nearly 70% of stocks out there today are in the red.
Last Friday was a weak day, but it was a fairly innocent day as we simply digested a portion of last weeks move higher.
Today’s follow through lower, should give us a bit more concern as we fall back below the 215 SPY resistance from last week as well as the breakout level to all time highs in the QQQs at 118.
It’s the close today that is key, so it will be on the bulls to try and pick us up off these levels and end of the day near the highs creating some type of reversal.
If we don’t see that develop, sellers can easily build momentum to the downside.
Notable Movers: Commodities, Volatility and Bonds, all making their way higher.
We Go On To Discuss:
- Our positioning and strategy moving forward.
- Setups we’re interested in.
- Overview of open trades.
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