Get Your “Observe” On

The market has had multiple chances to fall off of the cliff today. Internals have been weaker than the broad averages all day long. As I am writing now, I see more green across my screens.  However, the Nasdaq is the noticeable weak link.  I would use today’s close as a good indicator of how the market performs the rest of this week.

Keep in mind that we successfully tested the $SPX 20 day moving average today at 1183.  So, the positive reaction we had to that reference point is obviously bullish so far. If we slip down near the close below today’s low, I will likely look for some short exposure. On further strength, however, I’ll look for long setups.