The S&P 500 / SPY is Trading at Previous Breakout Level in Early Trading
S&P 500, Futures and SPY are trading near breakout levels set last week. Early session price action is moving off this level at shorts cover their positions.
Summary
SPY 60 Minute
- SPY Wednesday PHOD was 264.79.
- SPY is was hovering near 264.80 (+/-) in early trading, with lower levels being tested as we send this out.
If this early session low is bought, and price action rises after the Opening Range, we will look for VWAP to continue pressing higher. Session lows have been tested this morning as well, so if drift closer to 264.00 (+/-) we will position for a short term pullback, with potential targets 261.06 then 258.91. The latter would be a 3% drawdown for 2019.
TICK cumulative finished the week very strong, as did TICKQ for the Nasdaq. Breadth, both NYAD and NYMO are in a bullish cycle.
The dip last week appeared to be sector rotation, as fund managers sold high flying pharmaceuticals and other stocks that were trading at 52-week highs. Beaten down semiconductor and transportation stocks were bought.
S&P 500 SPY and Earnings
There is a full slate of earnings announcements this week, with many IBD50 stocks reporting first-quarter results. Caution is warranted.
Futures are red, trading near early session lows.
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Happy Trading,
Vinny
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