As it always does, the S&P 500 (SPX) managed to bounce following a hard sell-off the day before to erase nearly all the losses on the day.
What is most peculiar though was the failed attempt by the bulls to push the market over the declining trend-line from the all-time highs established back in August. Instead there was a sharp sell-off in the last 15 minutes of trading.
For the bears here, the key will be to break price on SPX back below Thursday’s lows, and ultimately back below the 2140 level.
The 50-day moving average is still providing some problems for the bulls going forward.
Volume on SPDRs S&P 500 (SPY) fell slightly on Friday, but remained well above recent averages.
On the 30 minute chart, SPY broke out and above the triangle established during the month of September. but fell back below the break out level at the close,s Friday afternoon.
Nasdaq (QQQ) remains in a healthy state with price consolidating right below its all-time highs.
Going back to 9/16, the 20-day moving average remains incredibly strong for the Nasdaq.
Oil continues its push higher, looking to increase its win streak to four days, and breaking above the September highs and thereby establishing a higher-high.
Massive meltdown in the CBOE Market Volatility (VIX) on Friday, as it dropped back down to 13.29 and towards the rising trend-line off of the August lows that has been a source of market reversals in equities.
The number of stocks trading above their 40-day moving average increased 19% on Friday, to 50%.
Covered my 3 short positiosn on Friday for a small loss.
Did not add any new positions on Friday.
May add 1-2 new swing-trades to the portfolio today.
Chart for SPX: 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.