Breadth is improving while stock markets print new highs. Despite the Monday surge in S&P500 futures, price action faded setting up a potential buy the dip open this morning.
AAII Bull-Bear Ratio
Pivots in this ratio have marked reversals and bullish trend continuation. This time is no different than 2009, 2010, 2012, and 2016 despite Covid-19 and the constant political turmoil highlighted by the financial media.
Momentum is bullish, as illustrated in the lower panel. Bulls are joining in.
Breadth Improving – New Highs
New highs are printing daily as the upper histogram confirms. NYAD in the middle panel echos this data as advancers beat decliners. Look for new highs in the NYAD, as the NYSE nears the February 2020 highs.
Unless something changes dramatically, we are bullish.
Futures are lower (13.50 pts).
The 10yr. yield is rising. If this continues, it will confirm the bullish equities thesis in breadth. Look for higher yields to continue into year-end.
- Top Absolute Gamma Strikes: Read as support/resistance
- SPX: [3600, 3500, 3450, 3400]
- SPY: [360, 355, 350, 340]
- QQQ: [290, 285, 280, 275]
- NDX:[12000, 11800, 11000, 10900]
- courtesy – spotgamma.com
Join us today in the trading room for our LIVESTREAM broadcastduring market hours, as we navigate the current environment. Watch, listen, and trade from 9:20 AM to 4:15 PM Monday through Friday.
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.
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 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.