Very odd day today. It seems like a shakeout kind of an action.
This morning the way market opened, I thought we will see 2% day down but as day progressed, we saw positive sign in the market. Market breadth is still not very negative. I can see more selling than buying but the ratio is not very high that I can become bearish. Usually at this level for market to go down we need major selling in the market.
S&P closed in the same 1313-1316 territory. Todays action shows that we still have major demand under 1313 price and it had over come the supply. We will go through this Supply demand war until one of them wins this battle. Until it happens unfortunately, it will be a choppy market.
Big cap stocks ended up positive with decent volume (not high by any standard). This was the most unusual thing about the market. Market is still strong.
I am not bearish with this market until I see negative breadth or close below 1307. If we have true demand, we should see close above 1313 in next day or two. I would not be surprised if we see another high in next couple of days.
I don't suggest to have any new long position until we get heavy volume in the market. But again S&P looks very strong today.
Tomorrow will be an interesting day....
This morning the way market opened, I thought we will see 2% day down but as day progressed, we saw positive sign in the market. Market breadth is still not very negative. I can see more selling than buying but the ratio is not very high that I can become bearish. Usually at this level for market to go down we need major selling in the market.
S&P closed in the same 1313-1316 territory. Todays action shows that we still have major demand under 1313 price and it had over come the supply. We will go through this Supply demand war until one of them wins this battle. Until it happens unfortunately, it will be a choppy market.
Big cap stocks ended up positive with decent volume (not high by any standard). This was the most unusual thing about the market. Market is still strong.
I am not bearish with this market until I see negative breadth or close below 1307. If we have true demand, we should see close above 1313 in next day or two. I would not be surprised if we see another high in next couple of days.
I don't suggest to have any new long position until we get heavy volume in the market. But again S&P looks very strong today.
Tomorrow will be an interesting day....
No comments:
Post a Comment