Good morning. Happy Tuesday.
The trend remains down. Everyone keeps looking for a bottom…everyone keeps planning for a bottom, and as long as that’s the case, it’s not going to happen. Here’s the SPX 60-min chart – lower highs and lower lows for several weeks. Every pop gets sold; every low gets taken out soon after.
Yesterday we started contemplating the possibility there would be no capitulation day, there would be no hysterical sell-off that completely broke the back of the bulls. Instead the market may just grind down to a bottom, and once enough investors get tired of Wall St. and give up hope it’ll ever go up, it’ll rally.
Yesterday’s gap down was entirely filled. Today we’ll get the flip side. Today we’ll get a big gap up. Here’s the 4-day SPX futures chart. As of an hour before the open, the contract is trading at 689 – just a couple points below resistance. I guess you could say it’s basing.
I’m still in cash…I’m day trading until there’s more clarity. As the market moves up and down…gaps up and down…I’d prefer not to guess what or when the next move will be.
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today’s upgrades/downgrades
this week’s earnings & economic releases