Is This The Real Deal?

 

On Monday, the Nasdaq gapped lower and chopped
around. The good news is that it managed to close positive and above
its open.

 

The S&P tailed
below the April lows but reversed to close well.

 

The VIX ($VIX.X)
gapped higher on the the overnight weakness in the futures, but began
to implode. This action sets off a repeat batch of Market Bias
signals.

 

The Nasdaq 100 VIX ($VXN.X)
also gapped higher and began to come in on the positive action in the
underlying index.

 

So what do we do? The
fact that the market bounced as it returned to its old lows combined
with the reversals in the volatility indices suggests that we might
finally see the bounce that we’ve been looking for over the last weak
(oops, Freudian slip). Two things though, don’t bet the farm and don’t
overstay your welcome–last time I checked my sticky note still said
“We’re in a bear market”.

Looking to potential
setups, most everything on the short side is too oversold. And,
on the long side, there’s just not much momentum. Therefore, about the
only thing that may be worth considering is the S&P Spyders (SPX).
This is for the nimble only and simply a potential bounce play.
For the day trader, if it laps lower, look to play a breakout of the
morning range.  Otherwise, wait for additional confirmation. 

 

Best
of luck with your trading on Tuesday!

Dave Landry

sentivetradingco@prodigy.net

P.S. Reminder: Protective stops on
every trade!

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