Downside Probing Continues
Strange ways, indeed…the SP500, DJIA and NDX are all down 1% on the session as I write this update. Why is this strange? Well, we have not seen uniform movement in indexes in a long period, and this should lead to further testing of the negative sort.
Today’s session was highlighted by some sell stops in the SPH below 1365, as the market traded to its session low of 1360.50. After a strong snapback rally, we are in a holding pattern between 1367-1372. If we can get above 1375.50-1377, I would look for an afternoon rally towards 1393. Remember, we are nearing expiration which, historically, is bullish for the trade. Any trade below 1356 would be strongly negative, and most likely lead to a sharp decline over the next few sessions.