Tuesday's Market Pulse, Hold Long SPX,Dow,QQQQ
No volume breakout ramp on Friday, Trin indicating N.T. top because of short covering. The way they were closing out positions after 4, had shorts running for the hills, fearing another gap up, open. The ABC up is indicating a 1577 to 1580 top in the SPX so longs should look out for numbers as a retest of the breakout will probably occur at that time, if we make it there. The NDX weekly is outside the BB(the most in 3 years) with a RSI reading over 70 which generally indicates that a cycle top may be in or close to being in. There is a divergence on the SPX RSI weekly, with the weakness in the banks probably inducing that. The banks have reached a 50% retracement on Friday and then backed off. So basically they used Tech to get to this spot, with a bank rally off the lows for support, however, we are still in a bear market with them, so it may be a bull trap at this point. Generally at the quarter end they rally them into earnings. Guess with the government manipulation of figures and the Fed stepping in, to vault them over technical levels, one has to ask, is this for real.... LOL Yep, until technicals change.... BTW, Bally and I are hoping for more bad news to get us to 1580...LOL
Near term signals- Markets are in-sync. Strongest signals when they are all on the same signal.
Tradeable shorts or longs are a possible day trade, risky to hold overnight.
Good Luck
SPX Hold Long
Tradeable short below 1545, hold short below 1533
NDX/QQQQ /Hold Long
Tradeable short below 2110, Hold short below 2090
Tradeable short below 52.00, Hold short below 51.35
Dow Hold Long
Tradeable short below 14020, Hold short below 13920
AI
