Thursday, September 10, 2015

Market Recap For 9/10/2015

The market continues with its volatile behavior. Today, it opened slightly down and then it went positive after the first hour of trading. It reached its high of the day around 1:30 PM ET, and then the afternoon pullback begins. Today the breadth is neutral, with a U/DVOL ratio of 1.3 for the NYSE and 1.9 for the NASDAQ favoring the UVOL. The A/D is also in the neutral zone with 233 advancers over the decliners in the NYSE and 403 advancers over the decliners in the NASDAQ.

The SPY remains to be confined within a consolidation triangle/wedge and the price is getting near to the apex where it will have to make a move in one direction or the other very soon. Today’s price action shows a possible bear flag pattern on the 30 minutes intraday chart. The measured move price targets for this flag could move the price below the supporting trendline of the triangle/wedge. The 80% measured move is near the 193 level and the 100% measured move is at 192. The potential near term resistance is 204.40 and the near term support is 186.27. The SPY ended today’s session at 195.85 with a gain of 1.06 or 0.54%.

SPY - intraday

(click on the chart to enlarge)

The SP500 closed at 1952.29 with a gain of 10.25 or 0.53%. If it can remain above the 1948.04 level and move back above the 1993.48, then the 2040.24 could be in play. The near term potential resistance is 2040.24 and the potential support is 1862.49.

SPX - intraday

The Nasdaq 100 finished the day with a gain of 42.85 or 1.01% and closed at 4296.30. Its near term potential resistance remains to be at 4349.93 and the potential support is 4089.60.


The Russell 2000 continues to hold above the 12/16/2014 close and trying to move above the 1/15/2015 close at 1154.71. It ended today’s session at 1153.03 with a gain of 4.80 or 0.42%. The 2/2/15 price gap at 1175.51 still is the potential near term resistance and the October closing low at 1049.30 is the potential support level.


Next week is the FOMC meeting and the September rate hike speculation will be put to bed. By 2:00 PM ET next Thursday, the FED will announce an increase to the discount rate or it will defer the rate increase. To avoid the volatility, one could move to the sideline and wait until FED has announced their decision. The market continues to favor the short term traders.

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