Hello Everyone,
SPY system breakout trade new stop 411.58
Quick Notes: Today we got a logical follow through sell off (no one should have been surprised), the SPX fell to a low of 4128 but closed off the lows at 4165. We've been seeing major weakness in the big cap tech area over the last few days, especially yesterday, and that was probably a cause for the sell off. Plus the market is tired and was looking for some sort of excuse. The SPX is still holding it's uptrend line, while the QQQ nearly tested its 50 day MA, with major support at 325. For
the SPX major support is 4120. We have a lot of economic news this week especially with the Jobs report on Friday. The VIX indicator was giving a warning of a pullback in the market from mid last week, which we pointed out.
Commodities: Crude oil remains strong and the stocks in this area continue to hold up well. The Dollar bounced today and we saw weakness in the precious metals group, which did not follow through with yesterday's rally. This sector is still fine, if you are swing long a logical stop would still be at Friday's lows for the GDX and GDXJ. However I want to see this group try and form a higher low on this pullback - this onus is back on the 'gold bugs'.
We've actually had a few nice short trade ideas lately, as well as longs. I did add just a few new setups tonight like GVA and BPFH and EBET.
Matt
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4/26: SPX DVT = 4089, 2 day candlestick chart 4025