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NorthmanTrader

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Falling Out of Bed

sick-bedI’ve been expressing concern about this rally for a while now and didn’t like what I saw. If you missed my write ups I’ve documented the issues in the public and quick pick sections of the site. Today we are seeing a bit of a day of reckoning as much of the June rally and all of the July rally has been erased in virtually a couple of days:

SPY

We’ve been trading the market in both directions, but the notion that this market was safe and bullish was quickly revealed to be an illusion. Now this doesn’t mean we are crashing, but we are correcting and corrections provide great two way trading opportunities. Today the $DJIA continues its breaking lower action after falling out if its ascending trend line and below the 50MA. Today it touched the 100MA and this makes it a good bounce area:

DJIA That doesn’t make me bullish, but the depth of the move today has also created some dislocations. NFP Friday may just fix some of these. We shall see.

Have fun trading.

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Categories: Daily Market Brief

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