The market opened up and spent the morning session pulling back from its opening high. The backing and filling was orderly, unlike yesterday’s selloff where the selling was non-stop and intense. In the SP500 30-minutes intraday chart, it shows the price found support near the 1920 level during this morning’s pullback (1). In the noon hour, the price broke out from the descending triangle that was formed earlier (2). The price stayed within the upper range of the opening range throughout the afternoon and made multiple attempts to break above the opening range high (3). In the final 30 minutes of trading, the price was able to break above the opening range high (4) and closed near the HOD at 1948.86 with a gain of 35.01 or 1.83%. It has moved back into the consolidation range between 1948 and 1993. If it can move above the 1993 level without making a lower low, then it will have formed a higher-low and higher-high price pattern. This higher-low/higher-high pattern could be the beginning of a move toward the 3/11/15 close near 2040. If it fails to move above the 1993 level, then it could make a move toward last October closing low near 1862.49.
SPX - 30 minutes intraday chart
(click on the chart to enlarge)
SPX - daily
The SPY closed at 195.41 with a gain of 3.64 or 1.90%. The potential support and resistance levels for the SPY remain unchanged.
SPY
The Nasdaq 100 almost regained all the losses from yesterday. It closed at 4256.23 with a gain of 113.60 or 2.74%. The potential resistance and support levels remain to be at 4349.93 and 3765.28 respectively.
NDX
The Russell 2000 made an inside day today. It closed at 1146.03, above the 12/16/14 close, with a gain of 17.98 or 1.59%. The 2/2/15 price gap remains to be the potential resistance and the 10/13/14 close continues to be the potential support level.
RUT
The sentiment in the market is still predominantly negative, and there are many market participants expecting the market to retest the recent low. Some market participants are even expecting the market to move into what is categorized as “bear market”. If the market decides to retest recent low, watch the market breadth to see if it will exceed the August 24, 2015 level, as this will give us clues if there will be a lower low. And as the volatility continues to retreat and price starts to nudge higher, look for price movement that could take the market back to previous high.
As always, expect the unexpected!
