Hello Everyone,
Tuesday Comments:
Since losing their respective 50 day MAs, the SPX and QQQ have not been able to sustain any rallies. The past two sessions (Friday and Today) opened with upside gaps that were both faded. The SPX is clinging to the support level mentioned above which is now weaker after being tested recently (likely some short covering at this area). The onus remains on the Bulls with energy building via contracting trendlines intraday - possible catalyst for the bulls would be AAPL event or FedSpeak. If SPX fails to rally direct, next support area below is 3865. With deeply oversold conditions and some positive intraday divergence, one has to remain nimble as a throwback rally could materialize from this area or the next support level.
Please take a moment to look at the trade ideas.
