The stocks market finished with slight gains Tuesday after a Federal Reserve official called for an aggressive asset purchase program. Investor sentiment also got a lift from chatter about a coordinated bond-buying action in Europe and easing concerns about the Chinese economy
The $SPX climbed back above ~1,400 today for the first time in three months despite yet another late-day pull-in. The Nasdaq was again the strongest index, surging ~0.85%.
As the market has passed each hurdle, shorts have been forced to cover, adding fuel the bull fire. The pattern still controlling the S&P is the ascending channel that is been formed since that June 1st pivot low. Today the index tried to accelerate higher out of the pattern, but couldn’t hold all of those gains
Recent news, we see Priceline ($PCLN) to the list of earnings season casualties as the company failed to meet expectations with its report after the close. $PCLN is down ~15% after hours following the report. The next support area isn’t until ~$562.
I’m not sure what to make of this push to be honest as the volume has been light and the $VIX is getting very low ( Complacency) telling me to perhaps take a shot on the short side, a few vehicles to watch $SDS, SH, BGZ ( 3X play risky).
Key Levels on $SPY tomorrow
P3 = 141.96
P2= 141.21
P1= 140.76
Mid= 140.46
-P1= 140.00
-P2= 139.71
-P3= 138.96
I’m “guessing we are going to pull back to 140.00 area and then I’ll be watching the tape action for direction. If we pop, I’ll watch the ~142 as resistance.