Markets Remain in a Range as SPX (SPY) Pulls Back 3% on Tuesday
SPY daily dropped back below the 200d on Tuesday, as a range prints on the ETF. ALGOS accelerated once this key moving average was lost; SPX, NDX, IWM all reversed from what appeared to be a decent rally from November lows. At that time institutions began picking up shares at the reversal on Friday the 23rd. Now SPY remains in a range, where cash is king.
Summary
SPY Renko Range Bound
Renko printed a red brick on Tuesday, captive to the range that started in January.
SPY Daily – Where Are Institutions?
A week ago Wednesday, NYSE Up Down volume registered a +8.55:1 Up Volume day which many took as sign institutions were buying. This Major Accumulation Day (+9:1) was confirmed with a turn in TICK cumulative.
TICK cumulative is flat and neutral to start the morning session, with price action set to test the recent lows at 263.00 (+/-).
We’ll stick with our winners and watch for the cavalry to show up. In addition, we will watch the market movers and most actives for potential day trades. Shorts on the weakest stocks have worked best.
Bottom line, we will refrain from making emotional decisions as the markets test our will and strategies. Hedging with bonds, or reverse index products can help you sleep at night; consider SQQQ, SDOW, and SPXU for these purposes.
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Happy Trading,
Vinny
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