Quick Notes: Bifurcated market today with QQQ advancing to new highs while SPX/IWM closed lower with small caps experiencing the largest declines. Big cap tech held firm and powered higher led by AMZN which broke out of a pattern and closed up nearly 5 percent. However, Nasdaq overall breadth was weak with over 2 to 1 decliners (narrowing rally) and the same was true with SPX today. The Russell 2000 had approximately 4 to 1 negative breadth on the session. On the weekend, I mentioned the overbought RSI readings on the SPX and combined with the long weekend curtailing momentum today was ripe for some unwinding. With that being said, the SPX/ES did manage to hold and bounce nicely off noted support (4302 on ES) and push back up to resistance around 4333. Bulls would like to form a flag and then recapture resistance in an attempt to retest highs 4345 with next resistance above at 4375/80. A failure to recapture favors another text down to retest today's lows with major support below at 4275.
Most important here is to have a plan including an exit strategy and adhere to that plan in the coming days. A break below 4275 which is sustained weakens the structure and opens the door for increased selling. Over the weekend, I posted a few coils and some short setups which produced some nice trades today. You can make money in both directions so respect your trade triggers.
Note: Several previous ideas on watchlist remain valid but simply have not yet triggered so continue to re-examine each night. Consider making a fresh top 10-12 setups each night and put on front page along with existing trades. My advice is to keep your total ideas to a manageable number. Lastly, it's best to wait at times for valid setups to form - sometimes less is more.
Please take a moment to look at the trade ideas.
7/2: SPX daily DVT = 4258, SPX 2 day candlestick DVT = 4232, Weekly DVT = 4057