What the market said today was a repeat of the alert it sent out on April 1 telling participants to be cautious on any upside move and be prepared for a possible correction that is more than a simple pullback on an uptrend.
Today the DJI and the SP500 closed with a new recovery high off the February 11 closing low with negative internal, and it failed to resolve the Dow Theory non-confirmation. These technical stance along with today price action that resulted in a spinning top doji cast a high possibility of a correction for the near term.
Here are some of the things to watch. Tomorrow is monthly OpEx and if the open interest on the SPY is indicative of a 207 pin, then the SPX will drop at least 10 points, and if the 205 pin comes into play, then a 30 points drop from the SPX will occur.
On the daily chart for the SPX, the 205 pin for the SPY will likely resulted from a drop to near the 2048.70 support level.
(click on the chart to enlarge)
The 4/13/2016 gap will likely be filled if SPY is pin at 205.
And the 2053 support level on the emini SP500 futures will be tested once again for a 205 pin.
Here's how the open interest looks like as of 4/14/2016 close for the SPY. If the market ended in the negative territory for OpEx, then the possibility of a 205 or 207 pin is very likely, and if the market continues to march toward its all time high, then a possible 210 pin could be in play.
