Market Recap For 9/3/2015

Today, the market continued from where it left off yesterday. The SP500 opened up and rallied for the first 90 minutes of trading. Soon after it has reached the resistance level posed by the December 16, 2014 close, the pullback begins. The SP500 spent most of today’s session retracing from this resistance level back to support level at 1948.04, which is last Thursday intraday low. At today's high, the SP500 was up 26.37 points and for a short time, the SP500 gave up all its morning’s gains and went negative. While the market was pulling back, the up volume continues to lead the down volume. At the close, the NYSE U/DVOL ratio was 2.44 to 1, and advancing issues outnumbered the declining issues by 902.

The SP500 30-minutes intraday price chart shows it has finished slightly above the 1948 support level, and the daily price chart shows a shooting star doji formed from today’s price action. This shooting star candle is worth monitoring for a potential evening star pullback. If the next pullback appears and the SP500 fails to hold above the recent pivot low at 1903.07, then the retest of the recent low near the October 15, 2014 level at 1862.49 could be in play.

SPX 30-minutes intraday chart

(click chart to enlarge)



Here are today’s closing numbers for the SP500, it closed at 1951.13 with a small gain of 2.27 or 0.12%. The potential resistance and support levels remain unchanged at 2040.24 and 1862.49 respectively.

SPX daily chart




SPY




The Nasdaq 100 was unable to hold on to today’s gains. It ended the session at 4234.65 with a loss of -27.58 or -0.51%. The potential resistance remains to be at 4349.93 and the potential support continues to be at 3765.28.

NDX




The Russell 2000 ended the session with a small loss. It closed at 1145.15 with a loss of -0.87 or -0.08%. At the high of the day, this index was up 11.6 points. Although the Russell 2000 closed near the breakeven level, but the inability to hold on to its gains is very disappointing. Today’s price action resulted in a bearish shooting star like candle, and this could be the prelude to a potential pullback. The resistance and support levels are unchanged at 1175.51 and 1049.30 respectively.

RUT




Today the market closed mixed. The breadth is relatively strong in the NYSE and neutral in the Nasdaq. Tomorrow is weekly options expiration Friday and at 8:30 AM ET, the August job report will be available. The market will be closed on Monday for the Labor Day holiday, and many traders will close out their positions to minimize exposed risks going into the extended weekend. Therefore, one should expect additional volatility in tomorrow’s session.