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PMO buy, BULLISH... but SPX must close above 2678


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#1 dTraderB

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Posted 09 May 2018 - 06:46 AM

Consolidation is good, can lead to sustained rallies or declines, but consolidation has a limited shelf-life and can soon go bad. e.g. current SPX consolidation below the 50ma. 

You cannot deny the bullish tone in the markets and the bounce off the initial spike down after the Iran announcement demonstrates the strength of buyers and weakness and vacillation of sellers. That market tone, that mood, that characteristic of the market can change if the bulls cannot close this market above the 50ma @ 2678 or prevent a daily close below the critical 2645/50 support zone. 

Looking for that 37 VXX handle and QQQ closing above 169 sometime this week to start accumulating QQQ PUTS and VXX longs.

This SPX daily chart shows the key levels today --- 2689 to 2647 with 2668 pivot point and 50ma at 2678

Market have been compressing and that condition does not last. The bulls have the edge but can quickly lose it it they do not mvoe hte markets above critical levels.

See link below for SWENLIN's post on PMO buy for SPX & OEX. 

 

spx_pv_may9.jpg

 

 

 

DP Bulletin #2: SPX and OEX Garner New Short-Term Trend Model BUY Signals
Erin Swenlin |  May 08, 2018 at 06:07 PM

http://stockcharts.c...uy-signals.html

 



#2 dTraderB

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Posted 09 May 2018 - 07:02 AM

Watch that 10yr Treasury yield !

It is at 3% now, up 3 basis points this morning. 

And, there is that big treasury auction today



#3 Harapa

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Posted 09 May 2018 - 08:09 AM

Will short VXX...later



#4 Harapa

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Posted 09 May 2018 - 08:42 AM

Change in plan...

Long VXX @ 39.40...S/L 3% as always


Edited by Harapa, 09 May 2018 - 08:42 AM.


#5 dTraderB

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Posted 09 May 2018 - 09:55 AM

choppy

indecisive

SPX rejected again at 2680/85 resistance zone

VXX looks quite weak, but could rise quickly if SPX goes below 2675

VIX getting to buy zone with ow 13 handle



#6 Harapa

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Posted 09 May 2018 - 10:10 AM

Change in plan...

Long VXX @ 39.40...S/L 3% as always

Covered with a loss of few pennies...no good trend in sight...



#7 dTraderB

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Posted 09 May 2018 - 12:01 PM

Strong move up! 

Higher volume

SPX could reach 2710 today or later this week.

 

13 VIX handle ..... 

 

IT BULLISH 

 

Caveat: in the world of Trump anything can happen anytime to derail any market rally. You must have hard stops in place, always



#8 dTraderB

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Posted 09 May 2018 - 03:07 PM

Strong finish with SPX up by almost 1%, closing near the highs of the day, above the critical 2680/85 resistance zone.

 

The next target is the nearest swing high that must be taken out to violate the downward trend line.

 

 

15257824845021883825215.png

 

http://stockcharts.c...-key-areas.html