The markets are resilient, rising for a third day. This price action flies in the face of the bearish backdrop in media coverage. I might add that CNBC in particular adds very little value to your (our) trading decisions. Instead we need to focus on price and market internals, since this tells us what institutions are actually doing.
Summary
SPY Daily
The S&P500 bounced on Thursday morning. TICK cumulative shows the buying has yet to dissipate, as funds and institutions buy on the uptick. Price is above all moving averages. The 240 zone is resistance.
Nasdaq Composite 60 Minute
Nasdaq bounced hard on Thursday, as institutions picked up shares at a discount to recent highs. RSI is rising fast with price action, as the latter transitioned above the 9/20ema. TICK cumulative tells us institutions are buying more stocks on the uptick, than they are selling on the downtick.
Small caps are still a little worrisome, as price action remains below the daily 9/20ema. An attempt was made to regain the 50ma yesterday.
Watch List Performance
The watch list is performing very well. The two laggards hailed from the restaurants and bars industry group.
SBUX is producing a flag, so it could break higher soon.
I’ll be late this morning, as I need to take care of some family business. I anticipate being back in the office, by 10:30AM.
Use your TD setup and wait for the Opening Range. Hopefully the markets will resume its follow through with a nice bullish candle today.
Happy Tuesday,
Vinny
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