September 7, 2022 Mid-week Market Update
Stop the bleeding
Prices found some stable footing today moving higher in a relatively smooth, consistent fashion.
SPY 0.00%↑ $390 has been heavily watched and worked as support so far. This was only the second positive day for the index in the last eight. What’s different about this one is:
Magnitude - up 1.80% vs. 0.30% on the last positive day - Sept. 1
It came in at a meaningful support level - $390 dates back to May 12 and has been visited many times
Moving back over the VWAP anchored to June 17 pivot low. Could not do that on Sept. 1
Proximity to the 8-day EMA - getting back above the short-term moving averages, and staying there, is the next step (after stopping the decline) in turning around and changing the down-trend.
If that can happen I’ll start watching the overhead levels again for a) potential resistance and b) resistance turned support which would help prices continue to move higher.
$407, $420, $431 price areas are marked on the chart.
QQQ 0.00%↑ - Up nicely as well but has the added challenge of getting back over the anchored VWAP (purple line.)
IWM 0.00%↑ - The strongest advance of the three major indexes, but not quite back to the declining 8-day EMA.
$VIX - worth noting the decline here. Volatility and the Dollar continue to exert pressure on markets. The dollar didn’t help much today, but $VIX moving lower did.
This isn’t an “all clear” message. But maybe it’s a start.
Keep your eyes on the charts to see what’s next.
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