The SPY is losing the 50 day right now and we might get our first close below it since July today. This is not good, the last 3 sessions were a series of headfakes in both directions as we lost the 50 day then gapped up over the 21 then right back down and now we’re losing it. This is not bullish at all and if you’re in short term tech trades you’re gambling tomorrow is going to be a big reversal after the interest rate decision. From a technical perspective its easier to just close up everything here on a close below the 50 today if short term gyrations worry you and then should we reclaim it, then you go long again. The point of this is simply nothing good happens below the 50 day and you really only want to be long when we’re trending above it. Now if you’re in multi month trades like I am or using commons, you don’t have to panic sell but you should add in short calls to your positions and understand we will likely be weak for a bit more. This market remains ugly as it has been for weeks but with oil back over 104 and rates at highs you cannot realistically expect much upside at the moment.
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Here are today’s large cap momentum scans from the database. We are starting to see some tech names but what concerns me is you’re still seeing T,VZ, and PM these are defensives.
My Open Book
