Good Morning Traders!
SPs had range expansion down, but the trend day was interrupted with the AAPL hoopla which gave one last goosing to the shorts. The SPs then sold down 12 handles after the Russell failed to rally with it. SPs have now traded to the daily 20 EMA. They also tested the previous upside breakout high (see chart above). A close back below this important support level can lead to further retrace back into the middle of the range (1968). However, the short term summation tick is now oversold. The SPs may just have a brief test below this as well.
After range expansion down, the market has good odds of testing below Tuesday’s low. Any morning flush down can set up a buying opportunity, at least for a scalp.
Gold and Silver both have Buy Divergences on the 2-period ROC. There is a seasonal long window that lasts for 1 1/2 weeks. The precious metals have been following the currencies down. The Dollar index just tested a very well watched weekly high. Any reaction down in the dollar is unlikely to get too far since it had such strong upside momentum. See what gold and silver can do to the upside tomorrow as the daily charts have three pushes down as well. The Daily EMA is the target though this might be reached by back and fill/consolidation if the Dollar does the same.
Roll day in US indexes will start Thursday.
Have a good trading day!
Markets in BO Mode: