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Tuesday, July 11, 2017

Market Update 7/11/2017

Not liking the market up here, but I think the sellers are still on vacation.

Monday we saw a little fund (computer driven) buying, take out our 2430 target, before the $SPX rolled over - going into the close.

This morning we're seeing more weakness. Could see a dead cat bounce off the 2426 level, and trade into a topping pattern, or pull back further, but I'm having trouble pinning down targets on the $SPX. I think it's just better to sit on your hands, until a pattern develops.

Maybe we hold up in the top of this range, or pullback, before retesting yesterday's highs. Whatever the case may be, the rally of the past few days doesn't look like the end of consolidation.

The Dow chart shows support at 21390, and again at 21350, but once we see consolidation complete, I think we're going to see another washout.

 Even Oil looks week, and looks like it wants to spend more time building a base.

 Might want to try selling the banks here, since they've finally snapped back to a lower high.


Support on the $RUT is the 50 day ma (1399.11). If that breaks, that would signal a risk off trade, but until sellers return I think it holds up.

No trade

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