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Wednesday, March 8, 2017

Market Update 3/8/2017 - futures continue to look weak

Consolidation continues  

Dow: Lowering the DOW - wave iv - target slightly. If support breaks, then you want to sell.

SPX: Also trading in a tight range, with resistance @ 2370, and 2380. Possible broadening range. Did I mention wave 4's are difficult to predict? 

How long could the market consolidate sideways in wave 4? A month easy. 
Look, if short term support breaks, and this trend (in the down-turned broadening blue channel) continues, we're looking at a possible downside target of 2355 today, and 2350, as soon as Friday.  

That worst case scenario, would set up for a massive snap-back rally next week.

Here's how you trade it. As long as support doesn't break you are not a seller, but when support breaks you are a seller. Being a good trader, is just as, if not more important, than having valid targets. 

$GDX - Still looking for the bottom in gold miners, and not finding it. If the Fed doesn't hike rates, I suspect you will... 

Support on the $RUT broke. That probably points to the pattern I pointed out yesterday, being a wave "a" triangle, but If if it climbs back... you're a buyer. As of this morning, the trend remains down. 

It's hard to say which sector would lead a sell-off here. $SOX hasn't corrected. Energy continues to hold support. I wouldn't be selling the $RUT here. 
Oil consolidates sideways. I can't get too bearish on that. 

Looking at the #NASDAQ chart I tweeted out yesterday, I have to remain cautiously bullish. Trend is intact.  

We saw some bearishness ahead of OPEX next week, and that's what we wanted to see. Expect 90% of Options traders to be wrong again this month.  

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