Morning folks. Futures down slightly today amid weakness overseas and the digesting of some data reports. Weekly jobless claims came a bit better than expected which took us off the lows of the day but nothing to special to move us positive. this is to be expected. The "slightly better than expected" news coupled with oversold conditions took us off the lows of the range. Now to move above the range and start a new one will take something pretty good. The market doesnt just move in linear fashion. It has ups and downs. We are up for 2 straight weeks so we need a new catalyst to take us higher. What is the catalyst remains to be seen.
This is a good time to be careful. The sentiment has turned postive on the market a bit the last week. People are getting excited about trading. Are you? Exactly! those are the worst times to trade. 3 weeks when we loaded the boat off the bottom now that was a good time to load up.
Remember in an overbought market it just takes 1 piece of bad news to start the cascading downward. So keep stops tight.
Key levels to watch in the market as we potentially pullback today
overhead resistance at S&P 1,130 which if broken set up a move to S&P 1,175, here are the key pullback support areas I’m targeting:
- S&P 1,115: 200 day moving average
- S&P 1,110: Fill of Monday’s gap open
- S&P 1,104: 10 day moving average
- S&P 1,100: Upper downtrend line recently broken
trade safe. I am keeping elevated cash positons. 80%
80%. I will use my whole account to daytrade but when i go home at night. 80%. later folks.
