Interesting trading day today. Gapped below the historical trend line from 08-09 and generic support at $280 this morning, only to have the Bears fumble the ball and cough it up to the bulls who took it and ran with it ending the day well above trend.
They took a stab at the gap fill at around $273.50 but half way through we saw sellers exhaustion with no more sellers entering the market. With that the bulls (or PPT, either one) took it and ran with it the other way. Bounced twice off the trend line before breaking through. thought for a minute we were just going to fill the gap and get rejected and I was half expecting a fade back below trend but the bulls successfully defended the trend line and all the sellers went home early apparently. We also ended the day smack dab at the logarithmic .5 fib retracement. Also keep in mind volume overall was less than yesterday by a decent amount as well.
Banks rallied out of nowhere today which apparently spawned the rally as they were leading to the downside the past couple days. I couldn't find any news but they were looking pretty bad on the chart, looks like it may just be a counter trend rally or people/institutions buying the dip/covering shorts which was all it took to lift all boats.
SPY 5 min with play by play
SPY Daily - Note the weird tail candle that printed down to $272.99. On all other TF's that is no printing. Might be a "dark pool" print.
SPY fib retracement, right on the money at .5
VIX got absolutely roadhouse kicked to the face and rejected at the breakdown candle around 40 but did find support on the daily 100 period MA
SPX - The battle's being fought for this trend line
XLF getting a counter trend rally attempting to get back into support
IWM still showing overall weakness relative to the broader market even with banks rallying. Found support on the .382 log fib
XLK (Tech ETF) found support and bounced off their daily 100 period MA
Something to note, tho. The 10 yr futures are retesting their ceiling/resistance currently. If this pops to the upside and yields start falling lower this could be a catalyst for a reactionary move downards in equities. This is the fourth test of this level.
DJI bouncing of its daily 50 period MA on higher than average volume (banks)
NDX - Basically just XLK but regaining trend
They took a stab at the gap fill at around $273.50 but half way through we saw sellers exhaustion with no more sellers entering the market. With that the bulls (or PPT, either one) took it and ran with it the other way. Bounced twice off the trend line before breaking through. thought for a minute we were just going to fill the gap and get rejected and I was half expecting a fade back below trend but the bulls successfully defended the trend line and all the sellers went home early apparently. We also ended the day smack dab at the logarithmic .5 fib retracement. Also keep in mind volume overall was less than yesterday by a decent amount as well.
Banks rallied out of nowhere today which apparently spawned the rally as they were leading to the downside the past couple days. I couldn't find any news but they were looking pretty bad on the chart, looks like it may just be a counter trend rally or people/institutions buying the dip/covering shorts which was all it took to lift all boats.
SPY 5 min with play by play
SPY Daily - Note the weird tail candle that printed down to $272.99. On all other TF's that is no printing. Might be a "dark pool" print.
SPY fib retracement, right on the money at .5
VIX got absolutely roadhouse kicked to the face and rejected at the breakdown candle around 40 but did find support on the daily 100 period MA
SPX - The battle's being fought for this trend line
XLF getting a counter trend rally attempting to get back into support
IWM still showing overall weakness relative to the broader market even with banks rallying. Found support on the .382 log fib
XLK (Tech ETF) found support and bounced off their daily 100 period MA
Something to note, tho. The 10 yr futures are retesting their ceiling/resistance currently. If this pops to the upside and yields start falling lower this could be a catalyst for a reactionary move downards in equities. This is the fourth test of this level.
DJI bouncing of its daily 50 period MA on higher than average volume (banks)
NDX - Basically just XLK but regaining trend
