The Closing Print live trading and financial blog during market hours.

The markets are weak again this morning, with major indices at their respective 200d moving average. Hedges are working and cash is on hand if this turns out to be an opportunity. We need to see institutions active today as confirmation.

S&P 500 – SPX 200d

We’ve delineated the 200sma and 200ema zones; we use both. An inflection point in this area is assumed and anticipated over the next few days. Three (3) distribution days this week leave RSI in oversold territory imparting a 10% (+/-) drawdown from all-time highs.

Breadth at Extremes

Time and again, when breadth reaches these levels, its time to look for opportunities. We’ll put some of the cash to work once we see institutions are actively doing the same. We will follow their lead.

NYMO (-100) readings are rare. Reversals don’t always happen the same day, but they do eventually reverse in the days that follow.

Click to enlarge

Additional indicators were discussed on Monday and Tuesday. All of them are at an extremely oversold state as of Wednesday’s close. VIX remains at highs (27.56) and the Put/Call ratio is fading at (1.23). Both show signs of reversing further confirming an imminent bounce.

The number of stocks trading below their respective 50d moving average (SPXA50R) is in a washed-out state as well. Institutions are circling. In addition, the advance/decline percent oscillator is below (-30%). This always leads to a bounce.

Click to enlarge

At a minimum, we anticipate a dead cat bounce. It’s anyone’s guess how far this buying opportunity will take the equity markets in the weeks that follow. With this in mind, we’ll reassess the market conditions on a daily basis and update you as necessary.

Join us today in the trading room for our LIVESTREAM broadcast

during market hours, as we navigate the current environment. Watch, listen and trade from 9:20 AM to 4:15 PM Monday through Friday.

Happy Trading,


Want to become a member? Check details here:

Disclaimer:  Do your Own Research

Our content is intended to be used and must be used for informational purposes only. It is very important to do your own analysis before making any investment based on your own personal circumstances. You should take independent financial advice from a professional investment advisor in connection with, or independently research and verify, any information that you find on our Website and wish to rely upon, whether for the purpose of making an investment decision or otherwise. Trades and or positions listed and taken from the watchlist are my own and should not be considered “advice” to enter any particular position or asset.

Investment Warnings

We would like to draw your attention to the following important investment warnings. The value of shares and investments and the income derived from them can go down as well as up; Investors may not get back the amount they invested – losing one’s shirt is a real risk; past performance is not a guide to future performance.

Live Sessions

Live broadcasts are educational in their content. Proper risk management is considered on every trade or asset mentioned. 

*** Stocks highlighted are for information purposes only and should not be considered as advice to purchase or to sell mentioned securities. 

As always, the use of technical and fundamental analysis is encouraged in order to fine-tune entry and exit points to average seasonal trends. 

These mentions are stocks that we may or may not decide to trade as outlined in the watchlist. Always use a stop.