Market Recap For 8/12/2015

After yesterday selloff, the SP500 crashed through the 2063.52 support level at today’s open. It was down as much as 31.98 points when it’d reached the low of the day at 2052.09 during the first hour of trading. After the first hour, the market started to firm up and attempted to reverse direction. The market breadth chart highlighted how the U/DVOL and the A/D started to reverse direction around 12:00 pm EST, and how strongly these breadth indicators were at the end of the session. At the close, the UVOL moved ahead of the DVOL, and the A/D in the NYSE went from 1700+ more decliners than advancer to only 42 more decliners than advancers. In the Nasdaq, the number of decliners over the advancers went from more than 1600 to less than 400. In addition, the TICK at both exchanges was mostly positive throughout the session and with multiple instances where it was above 1000 in the NYSE, showing strong buy program activities.


Market Breadth Chart

(click chart to enlarge)



Once again, the SP500 closed above the 2079.11 support at 2086.05 with a gain of 1.98 or 0.10%. The potential support levels for this index remain to be 2079.11, 2063.52 and 2039.69. The potential near term resistance level continues to be 2108.86.

SPX




For the SPY, it also closed above the 207.95 support at 208.92, a gain of 0.25 or 0.12%. The potential resistance levels remain to be 211.63 and 211.99, and the potential support levels are 207.95, 206.26, 205.27 and 204.40.

SPY




The Nasdaq 100 intraday low came within less than 3 points from filling the 7/13/2015 price gap at 4434.11. It closed above the 4506.19 support level at 4528.19, a gain of 14.20 or 0.31%. The potential major resistance remains to be the 7/22/15 price gap at 4643.83. The potential support levels are 4506.19, 4434.11 and the support zone between 4379.75 and 4349.93.

NDX




The Russell 2000 broke below the 1200.74 support shortly after the open. It then proceeded toward the Fibonacci 127% extension before it found buyers to lift it back up. At the close, it ended at 1208.98 with a small loss of -2.16 or -0.18%. It did close above the ‘H’ pattern baseline. The potential near term resistance levels are 1215.42 and 1238.76. The potential support remains to be the 2/2/15 price gap between 1180.06 and 1175.51.

RUT




The market made an impressive reversal today, but one must remain defensive as oversold rally can be short lived. Although the market breadth improved during the session, but by no means the overall breadth has regained strength to sustain a trend reversal. Until the overall market breadth has improved, one should continue to exercise caution.