Pivot occurs exactly at the Consumer Confidence number release at 9:55 AM EST. SPX prints a high of 1220 then dies. Rumors on the trading floor expected a sentiment number of 60 but 57.8 printed so the euphoric pop at the open retreats. SPX made a second run to 1220 at 10:15 AM but fell on its sword again, the negative divergence on the minute charts spanking her down.
SPX:VIX ratio moving between 38 and 40 so the market bulls are in good shape above the 35 level. The utes are rockin' higher, now testing a triple top, May-July-September, but the charts look sick, negative divergence forming on daily and weekly UTIL charts. Thus, enjoy the party now, it may not last all that long. Retail and semiconductors are buoyant along with the utes, so the markets should maintain their overall buoyancy today.
Copper is up a few pennies but remains in the bear camp, as measured by Keystone's algo, commodities are weak overall, financials, the XLF, is down today, and volatiilty remains elevated. Thus status quo overall, no sector changes today so the markets should drift sideways to sideways up.
SPX tested the critical 1219-1220 resistance cluster, reference the SPX S/R post from yesterday, and failed, twice today so far. 1209-1210 offers support underneath, but this failed minutes ago. The minute charts are positively diverged and considering the commentary above, the SPX should recover today. The key levels to watch are 1198-1199, 1204, 1209-1210, 1219-1220 and the resistance cluster above at 1225-1227.
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