Pushing on 1060…

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pushing-on-1060

It seems that 1060 held as resistance again today. The Bulls must re-capture 1060 in order to push higher. It looks like it's all up to the jobs report tomorrow. I expect it to be bad, even with made up numbers from the Fed...

Volume was light with only 150 million shares traded on the spy. Which should have pushed the market higher. Remember, light volume equals higher market... hence, heavy volume equals down market. We should have had a bigger up day today with such light volume.

What that says to me is that the market is tired and ready to correct down. Add that to the fact that the dollar seems to be finding a bottom (triple bottom at 22.60 on the UUP). That spells trouble for the market. Regardless of what others are doing, I'm still short. I will only exit if the market closes above 107.65 on the daily chart of the spy.

We are in a down cycle, and should have a short term bottom on around the 16th-19th. I'm looking for 995-1000 by option expiration on the 16th. The next level of support is at 980, then 950. With only 7 trading days left till the 16th I don't think that 980 will be hit, but you never know? However, 995-1000 will produce a bounce on the first hit down. So, I'll get out there and then look to re-enter when the bounce is finished.

Red

128 COMMENTS

  1. Hey leo, like the blog – i'll be shocked if we do nail 1000 within a week, i'm not sure it's possible unless of course the begin now – i suppose anything is possible but there is a stink load of support on the way down. It'd take something in the order of an emergency % rate raise and/or a major financial going under for it to move there that rapidly – the OI on the index funds don't show this but there is some interesting outlying OI further out into november. Either way i remain open-minded and hope it plays out the way you anticipate. For me, just taking it each day as it comes.

    • The biggest support level on the way down is around 1020-1025. There are now 2 upward sloping trend lines and a horizontal line (at 1020) that will be major support. If they break, there is no more major support until 995-1000 area.

      The key today is of course the jobs number. One day at a time my friend… one day at a time….

  2. The biggest support level on the way down is around 1020-1025. There are now 2 upward sloping trend lines and a horizontal line (at 1020) that will be major support. If they break, there is no more major support until 995-1000 area.

    The key today is of course the jobs number. One day at a time my friend… one day at a time….

Comments are closed.