Well folks we have had quite the rebound off the lows and the rally, or BOUNCE should I say this week. With the results from the US election seemingly pushing us higher for a couple days it appears the rally may have fizzled here. After selling the rally back up to the 200 day I will admit that I missed these couple of percentage points, or the end of the bounce. You can see in the SPX how the 200 day MA was taken back and now it is sitting right on it here.
I have said that I will move back into the market when the 200 day MA is taken back AND HOLDS. That is key. I am not convicned yet by ANY MEANS. The reason is the two charts below. Take a look...
You can clearly see that the Nasdaq and the Russell 2000 have different views than the SPX. the Nasdaq has broken back below and the Russell was not even able to test it. Until these are able to recover these prices I do not believe the Dow Jones or S&P is going anywhere higher without them. I will be looking for price to come back under the 200 day MA in the SPX next week and if it comes back above and takes out the pivot then I will be long with a stop below. The NDx and IWM are very concerning and CANNOT be ignored...
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by heyimsnuffles
