When we take a look at the leader, or the DOW JONES Transports, we can clearly see that over the last few months, we have been in nothing more than a slow and steady grind within a rectangle range. You could say that we have been stuck in a box, and currently at the 5000 level.
As the market sold off into the close yesterday, the tick was showing resilience and is still down in oversold territory, so again I would not be surprised to see some buying into the end of the week come back.
We are also following our rules about looking for a low the Thursday or Friday the week before the OCT expiration. That would be in the next day or so. :-)
Happy trading :-)
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Hi I went long the spy on your recommendation.
ReplyDeleteI hope you are right. Are we going up the 50sma on the spx seems to be breaking..
What I can say is that I have been working myself into long positions. NO reason to fall in love with the downside here, even if we get some more down. It just became an easy trade ... over SM(50) good long ... under hedge for a few more days most likely.
ReplyDelete