New Lows For The Week
S&Ps set a new low for the week at 1509.50 and have now reversed around 1.5% from yesterday’s high. S&Ps are trading at 1512 after setting a high earlier of 1517.80 and a low of 1509.50.
So sorry to report — but I think the range has been put in for the day. We expect to spend most of the day between 1510 and 1517.
This market has to get above 1513.50 to even have a shot to get above the high of the day. If it did, we’d look for the area that we shot through yesterday at 1522.50. Meanwhile, S&Ps would have to trade below 1510 to approach downside targets at 1508, 1505.50, 1502.50 and 1500.
The low volume on the equity side is translating to low volume on the futures.
If you insist on trading in this market, I’d buy against 1510 with 1507.50, and I’d sell it at 1517.50 with a stop of 1524. But again, that’s only if you insist. We’re comfortable on the sidelines right now.
Little happening in the NASDAQ, which traded through yesterday’s low 3940. Volume is running about 60% of normal in the NDU, and arb activity between the QQQs and the NDUs is even lighter.