Stock Market Analysis

Wednesday, December 09, 2015

Still Trapped In The Price Channel?

The SP-500 revisited and tested the bottom of the 2050 price channel once again today in an almost completely technicals driven trading day. Don't know about the price channel? This was what I told paid subscribers yesterday:

"However, the interestingly narrow price channel the SP-500 has recently established between 2100 - 2050 seemed to be at work today as the market rebounded... ... with the odds favoring a positive day tomorrow as the market reach for the 2100 points level once again" 

(Yes, I only publicly post my report here every other day at best but paid subscribers get my reports DAILY for LIFE... sign up now! Only $99 for LIFE! And it takes only one winning trade to make that back and MORE, you know it!)

After testing the 2050 level again today, the market seems ready for another technical rebound up to retest the 2100 level once again as bond yields barely moved to reflect the negative close in the stock market and total equities put call ratio actually dipped from put options trading majority to call options trading majority (Learn about what Call Options are for Free). Are options traders positioning to profit from another short two or three days visit to the 2100 level? Expectations for tomorrow's jobless claims report is a higher reading whereas going by the tendency of jobless claims to be lower after a higher month, that expectation of a higher reading should be easy enough to take out, encouraging that one or two days move towards the 2100 level, perhaps for the final time. In fact, index  futures are already pointing upwards in expectation of a positive day tomorrow.

However the next two days turn out, it is really of little consequence to the real breakout move, which like I mentioned in my report to paid subscribers yesterday, continue to weigh heavily in favor of a bearish breakout. Today's trading also made a new intraday low for December, which is another point in favor of a bearish breakout on top of all the other reasons I have cited over the past week/s. Yes, Decembers tend to be positive ones, but not those Decembers that led into a market crash... this is looking more and more like one of those.

Market Crash Timer: ORANGE

For now, the market remains in all out neutral trend (very rare, the last time the market was all out neutral was just before the 2008 crash).

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