Hello Everyone,
Quick Observations: Once again volatility is the norm. The SPX traded in a 110 point range (just think about how many 100 point+ range days we've had lately), traded to a low of 4061 (not too far from our gap target of 4020 -4035) then rebounded to close up for the day. Most of the indexes and sectors now sport long-legged doji hammer like candlesticks along with some positive divergence from the 5 RSI and CCI indicator. Furthermore we have some positive divergence on various breadth indicators, and today the VIX closed back inside its upper Bollinger Bands. We also have positive divergence and wedge like patterns on the 60 min/2hr time frames. For now I'm favoring a short term trade low because of these various factors and the fact that I can count 5 waves to the downside. FOMC is on Wednesday so we'll see if we can get a bounce/rally attempt into that.
We also took an initial long entry today on SPY from one of the SPY systems
Matt
