Market Recap For 9/8/2015

Just when the majority of market participants are dreading and expecting the market to move lower, and some participants are even certain that the next stop for the market will be the recent low, the market exert itself and reminded everyone who is the boss. Instead of a continuation from last Friday’s selloff, the DJI gained 390.30 points or 2.42% and ended today’s session at 16,492.68, second best day of 2015. The up volume overwhelmed the down volume by a ratio of 7.5 to 1 in the NYSE, and a ratio of 5.9 to 1 in the Nasdaq. The advancers outnumbered the decliners by 1800 and 1498 for the NYSE and Nasdaq respectively. Not to be outdone, the Dow Jones Transportation index put in a higher high and moved above the resistance level posed by 7/8/15 close at 8002.54. Does this mean the recent downward move is over? The answer to this question is, “Only time will tell.” Until the breadth has improved and the market has moved above resistance levels, one should keep watching and keep listening to the market for clues on the direction of the next move.


DJT




The SP500 closed with a 2.51% gain or 48.19 points, and ended the session at 1969.41. It is getting near the 12/16/14 close at 1972.56 once again. From the intraday chart, one can see the price has broken above the triangular pattern depicted by the blue dash lines. If it can move above the 8/18/15 pivot high at 1993.48, then it has formed a higher high and the 2040.24 resistance will be in play. As the price maneuver its way toward higher level, the October closing low remains to be the potential support level until a higher high has been made.

SPX - intraday

(click on the chart to enlarge)


SPX - daily




For the SPY, a move above 197.91 could lead to a take out of the pivot high at 199.62. The 204.40 is the key resistance to watch and the October close at 186.27 remains to be the potential support.

SPY - intraday




Today the Nasdaq 100 also put in an impressive performance. It closed with a gain of 118.80 or 2.84% at 4303.53. It is in the process of making a higher high with the 4349.93 as potential resistance and the October close remains to be the potential support.

NDX




The Russell 2000 closed at 1161.76 with a gain of 25.60 or 2.25%. It could be making its way toward the potential resistance level at 1175.51. The potential support continues to be the October close at 1049.30.

RUT




The tone of the market could be slowly changing. There are still many participants waiting for the market to reach much lower level than the recent low. Whether their vision (bias) will come true or not, only time will tell. One shouldn’t be surprised if one won’t find new 52 week low on many stocks when (if) the market retest the recent low as the internal market low probably was made on 8/24/2015. In the meantime, one should focus on what the market is currently doing and trade accordingly.