SYA Daily Report, page-353

Again looking vulnerable?

Yes SYA lost 4 pips to finish at 8c. Our volume was moderate - just over 63m shares traded. On the back of weak Li sentiment especially from US Li overnight, it gave away the positive move it was on. Dipped below 8 to touch 7.9 before finishing at 8 - needs to hold here. Its again looking vulnerable now and a rescue squad may be required, especially if macro of Li and general markets is weak. But if those turn, then we should reverse. Last few days I have been writing that I had bought at 7.5. I had also written that I will exit if 8 doesn't look like holding. And today signs were there that it may not. I exited at 8.2 - not much gain but thought will exit and see if it can reverse. Last time I had bought at 9.2 and got out at 9, so thought this time at least be ahead.
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ASX Li stocks were mixed. Of the 96 stocks that I track, average loss was around 0.5%.
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Overnight US Li stocks had another bad day - they have probably got used to it in last 3 months. Average loss was around 4%, with ALB again leading the charge with drop of nearly 7%. Very tough 3 months has passed here.
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What next:
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Yesterday SP 500 made a small gain of around 0.2% to be at 4365. ASX though was not having much of it, but only marginally down around 0.2%
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I have been writing that SP 500 may have a some pullback shortly. The next best thing outside of going down is to play sideways for sometime. Yesterday SP 500 did exactly that - no clear direction and playing in a very narrow range of just 0.5% - with the recent volatility, it looked like nothing was happening. Upside 4400 first. Downside a hold of 4300, but many analysts think a play around 4250 - previous big support/resistance is at 4200.
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Lead Indicators were mixed and also providing credence to no clear direction. Though VIX stayed below 15, Yields rose. Dollar Index also trying to move up. Bitcoin stalled around 35k level and waiting for a storm.
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So what will happen tonight? US Futures in slight red. Asian markets largely red. No major economic data this week, but some earnings, and some Fed talks - these could provide small directions. Otherwise technicals and sentiment to drive the market. SP 500 has now done 6 straight greens in a row. Odds are that it may soon do a red. But that odds was also after 4 greens, but it has kept going up. It could continue its journey and get over 4400 to move to 4450. Will that happen?, Lets hope so. All the best..