GOOD MORNING TRADERS!
After a gap up opening, the SPs came within a tick of testing the well watched 2000 level. It is classic for a market to come close to a big round number but just fall short. Eventually it can trade through, but if one goes back in history and looks at the first time the Dow approached 1000, it took quite a few days before it mustered the strength to punch on through. And of course today the Dow made all time new highs (17121) just before noon but traded slightly lower for the rest of the afternoon.
The Russell failed to hold its gains as well and even the Nazdaq left a bit of a tail on the daily candles (only 11 higher lows in a row). There is an unfilled gap (pit session ) in the Dow and Sps to the downside …1991.50 will close this gap in the SPs. The daily 5 SMA will come in at 1989.75 beneath this.
1985 is the 120 minute EMA as of current reading. SPs Dow and Naz have not yet consolidated to the 120 minute EMA basis pit session since the upside breakaway gaps (basis pit session). Normally, morning weakness in an uptrend sets up buying opportunities, but since the SP pit session closed with an NR7, still keep an open mind.
Gold and silver have particularly tight coils on the intraday charts. For that matter, so does the British Pound, Crude and Hogs….Will volatility pick up in front of the coming three day holiday weekend and end of the month? Volume is normally quite light on a seasonal basis so stay alert to any unusual increase in volume to confirm range expansion.
SPs and indexes….turn around Tuesday punts ball into the malnourished bear’s court.