Update July 8

/5 Comments/in /by

Just a quick note

 

A little more than an hour before the close and we would probably need to see the markets reverse higher to feel good about the reversals that I spoke of in the morning report.  Right now I am seing this so far…so I urge ‘caution‘ if you are trading (long mkts) and this doesn’t change into the close.

 

The VIX looks rather bullish.   If the vix goes higher, the mkts drop.

VIX 7-8

 

SPX – below 200sma , tagged the 10sma and had no follow through today .  A close here would be concerning for longs.

SPX 7-8

 

 

Also note:

IBB – Held up very well, now starting to roll over?  TRAN rolling over  (UTIL are higher) etc.

ibb

 

 

Be cautious and safe

 

ALEX

5 replies
  1. deshy
    deshy says:

    Thx! Was going to post a comment about thoughts into the close…but you meet me to it!

  3. Cason
    Cason says:

    Is anyone familiar with the Barchart Market Momentum Index? http://www.barchart.com/charts/stocks/$BCMM
    Above 101 – short term overbought conditions, usually worked off next day. Below 99, short term oversold, usually (there are NO guarantees!!) indicates bounce or at least sideways consolidation (which also works off oversold conditions just as well). So, here’s to hoping for tomorrow! We’ll see what Alex has for us in the morning.
    I looked at SPY calls real quick to see if there was good risk/reward into month OPEX on 17th. They were extremely expensive (due to recent volatility). I would not be able to recommend this as a way to play any potential bounce at this time. Usually a favored trick of mine, but did not like the current risk/reward.

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