Concerns: 1) heavy selling volume puts pressure on market and can lead to short-term down trend. 2) Stochastic FastK line needs to rise above 75 by the end of this week. If not, we're likely looking at additional weakness.
SPX CHART:
Craig
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Wednesday, February 7, 2018
Market Posture Feb 7, 2018
I've attached the graph for you all. The Lower Pink Zone, noted on the chart, is the range I'd expect the SPX to trade in - near term - until it proves otherwise. With the velocity of the down move, I'd also expect a lower high. The first resistance target would be at the top of the lower pink zone - 2760. I'm still holding on for my historical February stats to kick. If so, I've got an expectation that the SPX will trade above 2730 by the end of February. We've experienced approximately 35 point short-term moves and 70 points for the larger moves on the SPX over the past several months. When volatility kicks in like it is now we might expect larger than 35 or 70 point swings. We'll adjust our ranges accordingly.
Concerns: 1) heavy selling volume puts pressure on market and can lead to short-term down trend. 2) Stochastic FastK line needs to rise above 75 by the end of this week. If not, we're likely looking at additional weakness.
SPX CHART:
Concerns: 1) heavy selling volume puts pressure on market and can lead to short-term down trend. 2) Stochastic FastK line needs to rise above 75 by the end of this week. If not, we're likely looking at additional weakness.
SPX CHART:
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2 comments:
Craig,
Thank you very much for keeping this blog updated. It is always very helpful and appreciated, but especially so during increased periods of volatility.
Cannot even remember when was last time the markets were so volatile. Even we prepared for it, timing was hard. Hope it will bounce back more ... whose shot put spreads are under water, but time is on my side...
Thank you for posting. It is always so good to see your posting, and comments.
Serene
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