Hello Everyone,
Quick Notes: Bifurcated market today with strength in Tech and weakness in the Cyclicals. Tech or bust type of day. The SPX began the day with some slight weakness and then traded in approximately a 20 point range for the next few hours (forming a bear flag). It then spiked down around noon slightly undercutting yesterday's lows where it managed to stabilize after forming a divergent low. It then rallied sharply in a "V" rally back up to resistance around 4230 before
closing at 4222. While the SPX was gyrating around, the QQQ's held up quite well with the coinciding pullback forming a higher low followed by a strong rally to new highs. This week is Quad witching (OPEX) and we have certainly seen increased ranges. For the SPX, resistance remains in the 4230's for the bulls to re-take for a shot to test the previous highs. Should this occur I would be watching the 4275 area for resistance.
While the market has been loose, we have managed to find a few nice trades (primarily tech related) and tonight I will review and provide a few new setups. Remain nimble and continue to trade what's in front of you.
Note: Several previous ideas on watchlist remain valid but simply have not yet triggered so continue to re-examine each night.
Please take a moment to look at the trade ideas.
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6/4: SPX Daily DVT = 4178. 2-day candlestick chart 4065, Weekly DVT = 3970
6/3: SPX Daily DVT = 4085 day candlestick chart 4065