So Far, So Good
The Markets
Just a quick look at the charts today.
In last Thursday’s Market Update we addressed the quick change in the markets, pointing out —
So far that’s what we’re seeing.
The second part of that is, “another leg higher.”
Let’s look at the charts.
The Charts
SPY is through the trendline and working on the next tests - the July high anchored VWAP, the 50-day MA, and the pivot support/resistance (shaded) area.
Staying in the upper bounds of the very strong recent move is bullish action. A few days of this should lead to that next leg higher.
A move lower and back to the trendline, the 21, 200, and 8-day MAs wouldn’t necessarily be detrimental. Though it would kill some of the momentum.
QQQ is staying high and working on the trendline. RSI has plenty of room above. All of the key MAs are below. Bullish action.
IWM is a bit more erratic. Closing the gap at $170 could happen before a resumption of the move higher. Watch the support levels.
DIA is also working on its trendline while staying very near the pivot levels and nearly completing an inside day (missed by $0.02). Nothing wrong with that.
TLT is kind of in ‘no man’s land’ here. Gapping below Friday’s low, and between the 8/21-day and 50-day MAs. One potential bright spot is the 8-day nearly crossing above the 21-day MA.
DXY The breakdown in the Dollar is music to the ears of stock bulls.
The Closing Bell
Can it hold up?
That’s what we’ll keep watching here. Today’s high-level consolidation is a good start. A few more days of that would be even better.
Don’t overcomplicate things. Watch the levels above and below for clues about what’s coming next.
The news calendar is fairly quiet this week, though we do have some Fed speakers, including Powell twice.
See you back here on Thursday.
The Disclosures
***This is NOT financial advice. NOT a recommendation to buy, sell, or trade any security. The content presented here is intended for educational purposes only.
Andrew Moss is an associated member of T3 Trading Group, LLC (“T3TG”) a SEC registered broker/dealer and member of FINRA/SIPC. All trades placed by Mr. Moss are done through T3TG.
Statements in this article represent the opinions of that person only and do not necessarily reflect the opinions of T3TG or any other person associated with T3TG.
It is possible that Mr. Moss may hold an investment position (or may be contemplating holding an investment position) that is inconsistent with the information provided or the opinion being expressed. This may reflect the financial or other circumstances of the individual or it may reflect some other consideration. Readers of this article should take this into account when evaluating the information provided or the opinions being expressed.
All investments are subject to the risk of loss, which you should consider in making any investment decisions. Readers of this article should consult with their financial advisors, attorneys, accountants, or other qualified investors prior to making any investment decision.
POSITION DISCLOSURE
November 6, 2023, 4:00 PM
Long: SQ1110C51, TWLO1110C55
Short: AMT, KDP, VZ
Options symbols are denoted as follows:
Ticker, Date, Call/Put, Strike Price
Example: VXX1218C30 = VXX 12/18 Call with a $30 strike