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Today’s Trading Plan: Leave No Dip Behind
Friday, September 30, 2016 6:27
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(Before It's News)
And just like that, without a moment’s notice, the market puts the bulls on notice with Deutsche Bank (DB) faltering.
The result yesterday was the S&P 500 (SPX) suddenly selling off hard and taking the whole market lower.
SPX looks to bounce this morning based on the futures rallying with the European market open (about 16 points higher off of the overnight lows).
When large banks start faltering, you have to be really careful and nimble with your trading. The overnight risks become much more elevated than usual.
SPDRs S&P 500 (SPY) saw its volume increase quite a bit from anything seen over the past two weeks. It was well above average as well.
The rising trend-line on the CBOE Market Volatility Index (VIX) provided hard support in which the VIX bounced off of yesterday – rising 13% to 14.02.
Once again though, at least with what is being seen in the pre-market, the bears are showing a lack of will power to drive this market lower, and the bulls are popping equities higher.
United States Oil Fund (USO) broke the downtrend off of the August highs yesterday. The highs from September is the next challenge. Break it, and you have a new higher-high formed.
30 minute chart for SPY shows a very choppy, but well-defined triangle pattern that SPX is currently trading in going back to September 6th. Watch for a break in either direction.
Nasdaq (QQQ) failed to reach new all-time highs and instead dropped back below its recent breakout level.
The number of stocks trading above their 40-day moving average dropped 21% yesterday, down to 42%.
Read more… Ryan Mallory is the co-founder of SharePlanner Inc, a financial website devoted to Day-Trading, Swing-Trading (both long & short) and exchange-traded funds. Ryan makes a strong emphasis on risk mitigation strategies, trading transparency, and trader education – not to mention a great set of stock screens as well.
Be Sure to Check out Ryan’s Site at Shareplanner.com