Page menu

Thursday, February 2, 2017

Market Update 2/2/2017

This update should be short and sweet, and that's good since we only have an hour before the opening bell.

Yesterday's rally on the DOW was faded, at my red line. Looking for a retest of yesterday's highs later next week - in minuette wave c of b, of E. We can safely consolidate lower as long as the $VIX doesn't break out. Watch the 19700 level for support at the thin blue line, at the open.

Looks like a panic wave e of C in a broadening pattern on the Russell. Normally wave C can't be a triangle (according to Elliot Wave rules and guidelines), but Elliott Wave documentation states that wave C may resemble a triangle when it's trading in this type of pattern.   

An alternative Elliott Wave Count would be a combination pattern, which always end if it trades into a triangle pattern. Either way definitely looks like bullish consolidation to me, and we typically sell in May, not early Feb.   

Resistance on the $RUT $VIX, the $RVX is 1929, and if you're trading the Russell 2000 you should already know that.

I called $APPL a buy and $FB a sell earlier in the week. So far I'm only half right, although last I looked Facebook was down in pre-market trading. I see little risk selling this one short, if you set your stop loss above the previous high 133.59.

See yesterday's update for the bullish energy trade. Also see support on this Dow Oil and Gas chart - $DJUSEN

Biotech isn't rallying so I'm putting that trade back up on the shelf.  
Longer term I'm bearish $SOX and most everything else, but for now the market holds up. The $VIX confirmed it yesterday. Fear not, AA

No comments:

Post a Comment