ajtj99's Market Pulse

[Justa Werkenstiff]

Market: Using SPX as a proxy, it rallied a bit more than I expected and looked strong into the close breaking the 10 dma and upper trendline with a jam job that lifted the Naz and Ndx in the final minutes. It sure looks bullish on the SPX!

On the daily, SPX trading indicator is through the roof. This generally means sideways at least or down today. I can't quatify it. So we will see how that plays out today knowing we might be in a pre-election bounce mode which is too hard to quantify. Longer term, this bounce takes place within the confines of three weekly crow-like candles and so a longer term reversal here is unlikely. It is also unlikely in the context of the Dow which has three perfect weekly crows. A bounce here is to be exepected though I certainly did not get a good signal which makes me skeptical of it for sure. The Dow bounce is unremarkable. The SPX bounce is stronger. Regardless, the put/call ratio on the shorter term moving averages is moving toward extreme readings (too much bullishness) and certainly does not support a big move up here. Instead, the put/call situation is rapdily starting to resemble that of the end of July which ultimately lead to more down.