On Tuesday the
SPX closed at 3875.44 or
+1.42% on mildly positive market internals and a sector profile led by consumer discretionary and technology names. As such, the
NDX finished up
+4.03% and outperformed while still under its primary trendline and 50-day average. Bulls would like to stay clear of the 23-26 Feb lows.
The ES/SPX has been trading a big range in the ES bracket that runs roughly 3805 to just above 3900. On Tuesday we do have a short covering-like profile pattern that brushed with the top of the bracket, but this would not be considered an attempted breakout. We backed off from an ES high of 3901.25 near the 03:30 ET period, leaving a lack of excess two TPO's wide (double hit on the 30-minute time frame) and that probably emboldened some short-term short positions for overnight trade, while at the same time leaving the possibility of a return to the top of the bracket. These are probably short-term traders, and there has not been much evidence for longer term participants on the buy or sell side. Traders will use caution on either the bottom or top of that bracket with a view to the support levels defined by hedging areas. Below the bracket, we have hedging support at 3770, 3750 and last week's ES futures low of 3720.50. The initial midweek resistance is probably 3910.
Tuesday, A-D lines moved from around +1400 to close at
+701 and NYSE breadth ratio was just above neutral to close at
+1.3:1 while NASD breadth was quite strong to close at
+6.23:1. VIX dropped by
-5.66% to finish at 24.03.
Good you have more staff for the team at the garage,
@roberter1. Those Sulphur Crested ones have character. Beautiful and smart. Wonder if they will try to get close to hound and what he thinks. Haven't been too near them, but have been around the Pink and Grey Galahs, and they are more than entertaining.
Yeah, while that rotation goes on vis the increased yields, the SPX is in a responsive trade mode right now. While we range this roughly 100-point bracket, shorter timeframe traders just do their thing and longer-term buyers, or sellers, just wait and watch. We also we have downtrend lines to deal with in both the NDX and the one in SPX at about 3900. There is that thing where we can pierce the edge of the bracket only to fall or climb back in, depending on where we are, so traders will be watching market internals and volume when we eventually do. Not sure how numb to the treasury yields rising, but it may be more the rate of change as most as growth stocks are not just for their dividends. Hope you all are having a good day.
