The markets experienced elevated volatility yesterday, with SPY, NDX and IWM all finishing with a bearish “Outside Day.” All three closed below the 9ema, with the SPY looking the worst. The Dow Industrials also failed to breach the 20,000 level. Still, AAPL, TSLA and T managed to hold near 52 week highs.
As mentioned on numerous occasions, price action is tight, very similar to July and August. MACD has crossed as well, while Stochastic drifts below the red zone. TICK cumulative grinds higher, seemingly in defiance of momentum. We also find the reverse Kirby noteworthy, as there is little support below, with the exception of the rising 20ema. Blocks printed at 224.40, precisely where we closed the session.
Sectors also gave back recent gains, with no exception. All sectors closed red for the day. It would seem the recent post-election rally has run its course for now, so elevated caution should be the rule today.
401(k) positions have gained handsomely. If we print a follow through bearish candle on higher volume we will exit our remaining positions in VINIX and take profits off the table. We will be all cash if this occurs.
Happy Trading – Vinny
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