Massive rally on Friday continued the afternoon bounce that was seen on Thursday and looks to continue on again today.
Friday's bounce had the look and feel of a dead cat bounce to it, especially considering that the volume was insanely low on Friday and well below any of the readings that has been seen so far this month.
Last volume reading that was this low was on 1/5 which was also a dead-cat bounce.
Be careful with trying to get heavily long at this juncture. The bounce appears very suspect at this point.
Resistance on SPY can be found (short-term) between $187-188 area.
Oil is poised to open higher but has gradually been slipping lower throughout the morning.
Still you have a double bottom in play on the daily chart and made even more clear on the 30 minute chart.
SPX reclaimed the 5-day moving average which is the first step in building a longer sustained rally going forward.
A 9.8% drop in VIX yesterday down to 25.4 and off of the recent highs.
Massive increase on T2108, bouncing 35% up to 23.01.
Since making highs on February 1st, the 30 minute chart has formed nothing but lower-highs since. SPX will be looking to establish the month's first higher-high on this time frame.
Insane price movements every day being created by computer generated trading (HFT's) in a highly volatile market marked with enormous headline risk.
There is a lot of stop-loss hunting out there in the market, and being agile with getting in and out of positions quickly has been extremely important.
My Trades:
Covered SPY on Friday at $185.20 for a 0.9% profit.
Covered QQQ on Friday at $97.30 for a 1.3% loss.
Did not add any new positions on Friday.
Currently 100% Cash
I want to see whether this market can hold the current gains since Friday or whether there will be a fade that provides me with an opportunity to short. I'm open to trading in either direction.
