Good Morning Traders!
Options expiration helped to keep a bid under big cap blue chips with expiring puts. The small cap shares retreated though, after getting a bit ahead of themselves. They were also on a pinball sell setup. The market is at an interesting juncture: There is still plenty of downside momentum and an intact downtrending channel on the 120 minute time frame. However, put call ratios hit deeply oversold readings. The idnexes also had an upside breakout from an intraday base that formed. Thee chart of the SPs says it all. Expect a reaction back down as there are now pinball Sells on the SPs. The question for today will be, does the market now find support at the point of upside breakout and fill in range at a hgiher level. Or, will it drop back into its prior trading rnage….either way, Monday is a Sell Short day on the 2-period ROC.
Gold has an excpetional breakout formation on the 120 minute time frame as does silver.
Have a great day! Linda
Markets in BO Mode: