The market is currently faced with challenges

The market is currently faced with challenges on both sides. The S&P (cash, futures, and SPY) are currently trading in a range between support at their ……….150 day smooth m.a. and resistance at unchanged for the year. The Nasdaq remains strong but is now struggling to move higher. The Nasdaq seems to be in a waiting period for the other markets to either move forward with the rally or start to selloff. The Dow is in a range between resistance at their 200 day m.a. and support at unchanged for the year. The Transports are currently showing both bullish and bearish action because yesterday they closed below their 150 day smooth m.a. but are poised to open back above it this morning. There is a battle going on right now between all of the markets. This area is important (technically) to all of the markets and the market is lacking leadership. I think that whatever the S&P (cash, futures, and SPY) decide to do from here will dictate the trade going forward. If the S&P can get into positive territory for the year I think that you will see the rest of the market take that as bullish action and start to move higher. If the S&P cannot sustain trade above their 150 day smooth m.a. (the 150 day smooth m.a. was yesterdays low on the button) then I think that the rest of the market sells off. Today I will be waiting to see how we open around the daily pivot at 1236.25. If we are sustaining trade below the daily pivot I will be a seller and be looking for us to fill the gap and possibly retest the 150 day smooth m.a. (1222.50) and support at 1221.75 where I will be a buyer. If we cannot sustain trade above the 150 day smooth m.a. I will turn seller and then be looking for us to fill in the single ticks below from 1219.75 – 1216.00 and then a break down to support at 1207.25 where I will be an aggressive buyer. Failure to hold 1207.25 I will turn cautious seller and then be looking for a test of support at 1192.25 where I will be a buyer. If we are sustaining trade above the daily pivot at 1236.25 I will be a buyer and then be looking for a test of resistance above at the TOV where I will be a small seller. If we cannot hold the TOV I will remain a buyer and then be looking for a test of resistance at 1250.75 – unchanged for the year at 1253.00 where I will be a seller. If we get into positive territory for the year I will turn buyer and then be looking for a test of resistance at 1265.50 where I will be an aggressive seller.

Morning Brief by Anthony Crudele

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