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Today’s Trading Plan: More Inside Days
Tuesday, October 4, 2016 6:27
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(Before It's News)
Second straight “inside-day” for the S&P 500 (SPX) where price closed inside the body of the previous day’s price action.
There is a rising trend-line off of the September lows that continues to hold strong for the bulls.
Couple that with the declining trend-line from the August all-time highs, and you have yourself a nice triangle pattern.
Yesterday marked another lost opportunity by the bears to drive the market notably lower, by allowing for the bulls to ramp the market higher in the afternoon trading.
There has been a significant amount of back-and-forth by the market in recent days where neither side can sustain any sort of rally or decline.
A positive finish today would market the fifth straight day of “up-down” price action on SPX.
Volume on SPDRs S&P 500 (SPY) was slightly below average yesterday and well off of the above average volume seen of late.
CBOE Market Volatility Index (VIX) continues to show an inability to sustain any upside momentum – instead it continues to get pummeled on a daily basis.
The rising trend-line from the September lows has rising support today at 2153. Be sure to watch that level today if there is a sell-off.
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 five days, and breaking above the September highs and thereby establishing a higher-high.
The number of stocks trading above their 40-day moving average fell by -9.1% yesterday to 45.5%
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