Market Recap For 9/24/2015

Today, the market started out in negative territory and reached its low of the day after the first 2 hours of trading. The SP500 was down almost 30 points before it starts to stabilize. It started to turn upward after the Euro markets closed. From the breadth charts, the A/D (middle chart) started to turn around 11:00AM ET, half an hour before the Euro markets close. The U/DVOL (left side chart) started to turn at 2:00PM ET. The U/DVOL turned positive for a brief moment for the NYSE before the sellers came back at the close.

Breadth Chart

(click on the chart to enlarge)



The SP500 held the 1913-1903 support zone. It closed at 1932.24, down -6.52 points or -0.34%. The pivot low continues to be the short term support for the SP500 until it has violated this level, then the October 2014 closing low will become the potential support. The resistance level still at 1993.48, the pivot high. If it can break above this level, then the 2040.24 will be the next potential resistance.

SPX - intraday




Correspondingly, the SPY held the 190.73-191.61 support zone. It closed at 192.90 with a loss on -0.70 or -0.36%. This support zone remains to be the near term support, then the October 2014 close will be the next potential support if it breaks below the pivot low. Similarly, the resistance is at 199.84. If it breaks above this level, then the 204.40 will be the next potential resistance.

SPY - intraday




The SP500 has been down three consecutive days and it is due for a dead cat bounce. The way it turns around today could be a short covering rally or it could be the beginning of a dead cat bounce. In regardless, the market’s general direction is still biased toward the down side. One should continue to be cautious and do not over stay with any long position. The current market environment still favors the short term traders.