$SPX $NDX SPY QQQ TQQQ tested Support1 overnight, and started climbing up this morning. We wrote in our trading plan last night:
As we write this after the trading hours of Wednesday 10/23, $SPX $NDX futures and SPY QQQ TQQQ have reached Resistance1. We posted a notice on Stocktwits that you should take your money and run. We hope you did!
Projections based on market internals
Even though market internals are still showing an intermediate term bullish bias, not all market internal indicators are equally bullish. Under the hood, Nasdaq market breadth has been lagging NYSE. And on the price action charts, small caps ($RUT IWM TNA) have been going sideway since February this year.
The key conclusion here is that the appetite for risk has been greatly reduced.
But the other important information to keep in mind is that big money is not ready to give up on this market yet:
As a result we have this Choppy Market that may persist for a while. What this means is that we still have to endure more short-term rapid swings up and down (Bounce and Drop).
The rest of this article covers:
Projections based on market internals (more)
Table of support and resistance levels
Planning your trades
Register your email here for full access to all our nightly analysis, trading plans and intraday updates.
No credit card.