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Thursday, June 17, 2010

SPX before Quad Witch day

The market had too many bad news to digest this morning as the CPI, Jobless Claims, Current Account and Philly Fed Survey all came worse than expected, but the one that really set the tone for the opening was the Philly Fed Survey which came 62.6% worse than the previous month.
The SPX sold off right at the opening to a low of 1105.90 before founding support, that was 8.75 points from yesterday's close at 1114.60 and stayed red most of the day in a range between 1106 and 1114, but the market managed to rally in the last 30 minutes of the trading session to close positive and for the third consecutive day above the 200 day moving average, creating a 10/20 simple day moving averages "mini" golden cross.
Interestingly enough the ADX is not participating with this move which tell us that the uptrend is no strong enough.
For tomorrow's quadruple witching day we can expect a very volatile day, so trading with smaller positions than usual would be the safe way to go.

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