FRIDAY March 9th

Friday, the final day of trading before the weekend.

 

SPX - So far the SPX has not been able to push above the 50sma yet. A day 11 peak would not be a good sign for the General Markets, but I do think that this should be able to get above day 11, because...

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March 7th – After The Storms

The markets have been choppy lately, and early February was really a bit stormy,  but after the market storms clear away, opportunities often present themselves in the manner of trade set ups.  We have been taking advantage of many of those lately.

  I guess that we can't really call yesterdays Gap down a storm of its own.  Yesterday I pointed out that this is where the markets were set to open ( Purple square). Would they continue to sell off, or would they be bought back up?

SPX -  You can see that the gap open did not sell off further, but steadily climbed  through out the day.  Adding in this area with a stop below March lows is reasonable.  The SPX looks to be crawling under the 50sma, and this is common,  but ...

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After Hours Drama

Just when you thought that it was safe to get back in the water, Gary Cohn, one of Trump's top economic advisors, resigns.   As the news came out,  it spooked the markets and the Futures dropped pretty sharply.  They remain down as I write this on Tuesday Night.

Usually these news events that sharply affect the markets do not leave a long lasting impression, so is this just light volume trading that is easily moving things around?  Knee jerk reaction?  Or is there going to be some follow through after the markets open, dropping us down to a higher low double bottom over the next couple of days? We'll know soon enough. For now, we'll take a look at where we were at the close on Tuesday.

 

SPX  - The SPX remained under the 50sma, but as I mentioned yesterday,  the TECH stocks were stronger at this point.  The BOX gives you a visual of where 'SPX down -30' would open.

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