S&P: Short Term Neutral For Now
Tim Ord | Dec 02, 2020 10:33AM ET
Yesterday we said, “Today the Tick closed at -270 and trin at 1.60 which is a bullish combination and suggests tomorrow could be an up day. The “Buying Climax” day of 11/9 had volume of 1.72 million shares and to break above the 11/9 high volume would need to be 1.55m or higher; which is unlikely.
Most likely the 11/9 high will be tested tomorrow but volume most likely will be less than 1.55m; setting up a bearish scenario. Pattern forming could be “Three Drives to Top” which has downside target to where pattern began which is near the 350 SPY range.” Today’s test of the 11/9 “Buy Climax” came in with volume of 68M and way short what was need for a confirmed breakout; suggests that this breakout could fail. Today’s tick closed at +246 and bearish but not sure if its bearish enough to start the pull back. Its common for signals to come in later in the week and Friday’s seem to have the best signals. Next week looks down. Short term neutral for now.
Yesterday we said, “There can be a short term pull back; but ultimately market will move higher. Intermediate term still appears bullish and suggests any pull back should be bought.” Having said that. Above are the VIX and the SPY. When both are up; it suggests the market may be near a short term high and today both where up. The VIX and the SPY can be up together for several days before a pull back can begin (noted on chart in late August).
The last time we showed this chart was 11/23. The chart above is the daily GLD (ETF for Gold). We have marked in red the “Selling Climax” days and in blue the test of the “Selling Climax” days. On 11/23 the test of the “Selling Climax” day of 11/9 came and to complete the bullish signal, GLD needs to close above the “Selling Climax” low (173.64). As of this reporting, the close is about 3 points higher. If and when GLD close above 173.64 will complete the buy signal. Impulse wave coming, but need to be patience. Long GDX (NYSE:GDX) on 10/9/20 at 40.78.
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.