The market has taken a small header since it’s early morning run-up just past the S&P 500′s daily pivot (SPY $90). However, the Cumulative Tick and Advance-Decline lines turned south at 8:00am pst, and price soon followed. We then got a small bounce at SPY $88.45 (near yesterday’s lows) and a nice supportive volume spike occurred. However, price action has yet to confirm.
I’ll be watching this level closely over the next few minutes. In the event it fails, I’ll then look to SPY $87.50 to $88.00 for support near the rising 20-day moving average. Volatility can never be unexpected on expiration Fridays, even as the VIX remains at a “relatively moderate” 44.
Here is why you need to follow twitter:
mrkt_rwnd 11:04AM PST – I believe we will hold and break that VWAP.
mrkt_rwnd Advancing Vol outpacing Decl. Vol.; Tick & AD Positive… but still need to bust that resist.
mrkt_rwnd 10:47AM PST – And here we are at the VWAP.
mrkt_rwnd 9:39AM PST – I need to go into a meeting, poss. resistance on the rebound at the VWAP $89.40.
mrkt_rwnd 9:18AM PST – Tick trying to reverse higher + supportive volume spike.
mrkt_rwnd 8:52AM PST – Note how Cum. Tick began to fade early in the hour. Watch this all day long.
Close – The market couldn’t bring it home past the Quad-Qs and IWM, but the suggested “breakdown” SPY support held just fine. Check in on the weekend update and have a good one!
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