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Today’s Trading Plan: Triangle Play
Wednesday, October 5, 2016 6:23
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(Before It's News)
S&P 500 (SPX) broke the four days of up/down with an additional day to the downside yesterday.
As always, the bulls manage to mitigate the losses by erasing around 40% of the losses in the final hours of trading.
Crude (/CL) is rallying hard in the pre-market, as it is already 2%.
Despite the break in the triangle pattern that I have been outlining for the past week, I still suspect for the back-and-forth behavior of the market to continue to a certain extent.
The rising trend-line that started with the February lows is in play today with a potential test at 2137.
SPDRs S&P 500 (SPY) saw an increase in volume yesterday and was well above recent averages.
There is a massive hurricane out in Atlantic (I know this all too well as I am likely to be slammed by it in the next 48 hours) that could affect oil supplies and increase volatility in the oil trade.
CBOE Market Volatility Index (VIX) continues to struggle, no matter the sell-off, to hold onto a rally of any kind. As yesterday once again saw massive selling and squandering much of the day’s gains.
The number of stocks trading above their 40-day moving average fell by -9.5% yesterday to 41%
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