The SPY gapped up into the underside of the 21 ema and rejected it turning lower and now below the 50 day again. This is not good at all. Rates continue to rise and pressure everything. Tomorrow morning we have a big jobs report that will decide our next big move, but you have a right to be cautious here because any close below the 50 day is worrisome and it appears we may have one today. The question now is could this be a fakeout before a rip tomorrow? It’s very possible, this is still quite the bull flag here but taking some chips off the table today would not be a bad decision, especially if you are using leverage. You never want to be at max risk when the market is below the 50 day unless you’re willing to gamble. The 100 day at 754 is now our next support down below so a 1% move down tomorrow and we’re losing that too and that is when things could get potentially ugly with your next support being the 200 day at 720. Now that doesn’t have to happen I’m just explaining the potential downside move should it come starting tomorrow.
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Here are today’s large cap momentum scans in the database, the rest of the small and mid cap names can be found in the link below.
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