Good Morning Traders!
The SPs have rallied to the top of a resistance area. After two days of trading low to high the 2-period ROC is poised to flip down on a “Sell Short” day. The DOW has a tight three bar triangle breakout pattern though, as does the SP.
Market indicators are neutral – Sentiment readings still indicate put call ratios at the higher side (no excess speculation) and the VIX continues to stay low as there is a seasonal bias for implied volatilities to remain low through June. Volume was the lightest in many days. If the market has a breakout from this three bar triangle formation, we expect an increase in volume. See the chart above: “All market participants watching the same movie…”!
AD broke down from a three bar triangle on Monday. Dollar index continues to remain well bid. Sugar has a pinball Buy. Bonds and Bunds – three bar coil – can trade in either direction on Tuesday!
Have a great day!