Morning update:
No bad news out there and internals keep strengthening. ES hits 1292.50 resistance (38.2%) and the VIX has stumbled down to 18.66, its lowest level since early June. NQ can still move up to 1936, but seems to be stalling at 1933.25, just as ES tags 1293. Yields have advanced close to the 3.9%. It's a bullish day, but pay attention to oil and the 119 level. Today could either be a monster rally if ES pushes above 1292/1293 and NQ 1936/1937, or a dud if oil rallies again. For daytrading purposes, it's a buy the dips day for now.
Regardless, it does look like the hit of 20 dma yesterday for NDX put in a low that will be hard for bears to break for some time, although we still have today's gaps to contend with. Major support is obvious at the 200 dma (1909).
The VIX is close to the lower band and 10% off 10 dma, an area of caution, especially in a bear market. It makes for very cheap puts all of a sudden. ISE equity is on its second day of +200 readings. This is a very psychotic market, depressive one day, ebullient the next, but welcome to summer trading. Let's keep it simple and see if yields find some takers at 3.9%.
No bad news out there and internals keep strengthening. ES hits 1292.50 resistance (38.2%) and the VIX has stumbled down to 18.66, its lowest level since early June. NQ can still move up to 1936, but seems to be stalling at 1933.25, just as ES tags 1293. Yields have advanced close to the 3.9%. It's a bullish day, but pay attention to oil and the 119 level. Today could either be a monster rally if ES pushes above 1292/1293 and NQ 1936/1937, or a dud if oil rallies again. For daytrading purposes, it's a buy the dips day for now.
Regardless, it does look like the hit of 20 dma yesterday for NDX put in a low that will be hard for bears to break for some time, although we still have today's gaps to contend with. Major support is obvious at the 200 dma (1909).
The VIX is close to the lower band and 10% off 10 dma, an area of caution, especially in a bear market. It makes for very cheap puts all of a sudden. ISE equity is on its second day of +200 readings. This is a very psychotic market, depressive one day, ebullient the next, but welcome to summer trading. Let's keep it simple and see if yields find some takers at 3.9%.
This entry was posted
on Friday, August 22, 2008 at 8/22/2008 10:21:00 AM.
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