________________
I noted last night that I did not expect a morning gap higher to hold, and we are seeing stocks fade thus far today. The Nasdaq, where many high growth firms are housed, is underperforming the stodgy Dow Jones Industrial Average. Usually when this happens it is a sign that risk appetite is not at full force, and it is best to back off the action for now. As always, your timeframe is significant in that this short-term breather can easily be deemed constructive in terms of helping charts set up for higher prices down the road.
The S&P 500 still did not precisely touch its 50 day moving average (around 1177 and declining), and the presumption is that we will see at the very least a touch quite soon. One scenario that the bulls would favor is to see a few days of consolidating just under the moving average, preparing to rip higher though it. Scenarios aside, the bottom line is that the market is taking a break and that is being reflected by the lack of enticing trade setups underneath the surface. That can turn on a dime, as we saw with Tuesday’s stunning reversal, which is all the more reason to continuously scan charts and look for changes in market character.
If you enjoy the content at iBankCoin, please follow us on Twitter
Thanks for the update, enjoy the added touch of an apropos image on your posts.
Indeud, sir. Indeud.
S+P futures hit the 50day precisely in the pre-mkt
good point
what would inappropriate red look like?