Good Morning Traders!
First – wishing everyone a fabulous three day weekend to end the summer!
Stock indexes had a much needed flush below the daily 5 SMA and since the market traded from low to high after a large opening gap down,
it is obvious traders were waiting for this. The SPs closed at the upper end of the range, back in the area of the prior 96 high volume node.
The SPs are on a 120 minute grail buy so technically they can take out the 2 day high. This may or may not happen on Friday though as
volumes may not be there and traders already got long on Thursday. The 10 day Trin is still registering overbought readings. Closing Tick is neutral.
Breadth oscillators are correcting down but not oversold enough to support a new leg up yet. Still, look for upside follow-through into the three day weekend.
Of particular note: The Russell has an unfilled gap (see chart example above).
Bonds tend to remain firm the last day of the month, especially in front of a three day weekend, but they have a Sell Short day on the
2-period ROC and can continue to have some play around the previous 20 day high – look for some two way scalping – market needs a reaction down.
Also, the Dollar index can trade back up higher as it is on a 5 SMA BUY…currencies can remain under pressure. The Yen in particular has a nice Sell Short day.
GET READY FOR AN AWESOME TRADING MONTH IN SEPTEMBER!
Markets in BO Mode: