Seemingly fraudulent 45 degree market pump last night on more garbage headlines about Trump and what his latest bowel movement looked like.
We're in a recovery not a depression, Trump's fighting for you, Stimulus hopes, Vaccine hopes, FED will do anything, please, trust us!, Nancy Pelosi is tough, but she loves you! Etc. etc. I do my best to tune out this "noise" as I see these headlines and the apparent resulting price action as a distraction from reality - which is that the real economy is toast.
Notes:
- Airlines rallying on Trumps tweets about a bailout. Yay Airlines! Good luck convincing people to fly.
- The 10Y yield jumped right back to yesterday's pre-close level at .777.
- The majors all opened up about 1%.
- Vix got smacked back down to the 29 level overnight.
- USD is relatively flat, Gold down 1%, Bitcoin down about half a percent, Oil down about 2%.
On to SPY Analysis:
We had a solid bounce off the 21 day EMA yesterday, after we fell back below the Green line resistance, and 50 Day MA. Bulls couldn't hold the Green line or the 50 day MA, after capturing those levels prior to Trumps stimulus negotiations tweets. Over night we were pumped back to the 338 level, and are currently sitting comfortably around 339 and change. Yesterday I mentioned the possibility of trading sideways, especially while we're stuck between tight support and resistance levels. We may see a continuation of selling today, and a breach back below the 50 day MA once again to keep the downtrend thesis intact. Whether or not we find interim support again at the 21 day EMA is anyone's guess, but imo the next major support is at the 100 day MA/recent low on Sep 24th, between 320 and 324. This is a key level to watch imo.
Stay tuned for live updates throughout the day, and as always, thanks for having me guys. Cheers, Michael.
If you like our analysis, please hit the Like button and subscribe to our profile so you don't miss our new analysis and updates.
The information and analysis shared in this post is not financial advice. Always conduct your own analysis and research.