The market opened significantly lower this morning on the dollar strength and we had a non-trending day professional gap (how boring) as we held below the trading range we have been in since the beginning of the month. Let’s see if we get a test of the crucial SPY 108 level which is a gap support and the location of the 50-day moving average. For now the assumption continues to be that we are trading range bound between SPY 108 and SPY 112. Until we break out one way or another, there is absolutely nothing to do here but going long at SPY 108 and shorting at SPY 112, this has been the trade for the last 3 weeks. Holding below that SPY 108 level would cause more selling pressure and a potential pullback toward SPY 103 and hence change the short-term picture.
Economic Data:
- Wednesday: Wholesale Inventories m/m (-0.6%)
Evening Reading:
- A Trade worth making (SMB)
- What every short-term trader should know (TraderFeed)
- Lowry research: Rally getting tired but not over (Trader’s Narrative)
- Market taking a breather (Bespoke)
- Millions in US drink contaminated water (NY Times)
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- SPY DAILY
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- SPY HOURLY
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- SPY 30 MIN
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- QQQQ DAILY
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- XLF DAILY
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- XHB HOMEBUILDERS DAILY
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- IWM DAILY
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