Hello Everyone,
Quick Notes: Yesterday I mentioned that that market was quite oversold short term with both the NYMO and NAMO closing below their respective Bollinger Bands which had us on alert for a bounce. Overnight in the Globex session both ES and NQ made new lows but they were divergent which also favored a rally attempt during today's session. With that backdrop in place, the major indices gapped higher on the open and rallied quite sharply with the SPX rising 70 points to around
4130 (near yesterday's gap) before pulling back 40 points and then rallying again to make a marginal new intraday high before setting up 50 points at 4112. Wild session with the QQQ and IWM retracing their early gains to fill their open gaps before bouncing again with each making a lower high in the afternoon. On the daily charts, today's move was simply an inside day so the bulls still have work ahead. The recent theme of tech lagging (especially the stay at home plays) continued today.
Remain nimble.
Following yesterday's tweet from Elon Musk, Bitcoin sold (and several other coins) sold off sharply overnight. Worse yet, were the continued plunge in the coin stocks we have been tracking as they worked lower again. Those recent short setups have certainly performed well (trim and trail down stops). The other setups (only a few) that I added on Tuesday, all provided a trade but overall most setups are too loose and not objective due to the recent volatility - sometimes LESS
is MORE. Focus on fewer names and trade them well.
Please take a moment to look at the trade ideas.
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5/6: SPX DVT = 4107, 2 day candlestick chart 4065