Morning Brief by Anthony Crudele

We failed to sustain trade above the 150 day smooth m.a. in the S&P. That is short term bearish action and the market showed us that on yesterdays close. Today is the same ……story that it has been all week; the Nasdaq remains strong by sustaining trade above all of their major moving averages, the Dow continues to flirt with unchanged for the year (11,577) and their 150 day smooth m.a. (11,518), the S&P and Transports are trading in between their 10 day m.a. and their 150 day smooth m.a. The market is in a battle for direction. The Dow and Nasdaq want to go higher while the S&P and Transports want to remain in a sideways to downward range. The 150 day smooth m.a. in both the S&P and Transports are very important. If those markets can close above that m.a. then I think that there will be little resistance above and we could see a big rally. I also think that if the S&P and Transports cannot hold their measly 10 day m.a.’s then I think that we could start heading lower and re-test their 50 day m.a.’s. Today I expect the battle to continue (choppy trade) between the bulls and the bears. I will be initially waiting to see how we open around the daily pivot at 1212.75. If we can sustain trade above it I will be a buyer and be looking for a test of the range between yesterday’s HVB up to the TOV (in between that range is the 150 day smooth m.a. at 1222.07 and resistance at 1224.25) I will be a seller in that range. If we cannot sustain trade below the TOV I will turn buyer and then be leaning on the 150 day smooth m.a. at 1222.07 looking for a test of resistance above at 1235.75 where I wil be an aggressive seller. If we cannot hold 1135.75 I will turn buyer and then be looking for 1247.25 where I will be a seller. If we cannot sustain trade above the daily pivot at 1212.75 I will turn seller and then be looking for us to fill the Gap and possibly test support below at 1201.25 down to the 10 day m.a. at 1198.80 where I will be a buyer. Failure to sustain trade above the 10 day m.a. at 1198.80 I will turn seller and then be looking for a test of support below at 1189.75 where I will be an aggressive buyer. Have a great day!

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