S&P $3,200 Balance; February Gap; Nasdaq Weakness, Russell and Dow Strength.
Technical:
Broad-market equity indices balanced higher last week, evidenced by the responsive, tight trading range.
Recapping last week’s action, on Monday, the S&P 500 gapped higher, outside of a prior balance area, but failed to continue, rotating back into the prior week’s range. Tuesday’s session continued Monday’s selling activity, but reversed just short of the prior balance area low.
After news that Moderna Inc’s (NASDAQ: MRNA) COVID-19 coronavirus vaccine produced antibodies, Wednesday’s session saw prices pushing higher, gapping beyond Tuesday’s range. Buyers attempted to burst through the resting liquidity at $3,230, but failed with prices later following the Nasdaq’s relative weakness lower to close the overnight gap. After some mixed economic data, Thursday's session was dominated by responsive activity, balancing out near Wednesday’s v-bottom low, with sellers lacking conviction the most via the minimal excess low. Alongside monthly options expiry, Friday’s session continued Thursday’s tone with the intraday trading range remaining tight and responsive.
Looking beyond broad market indices, the innovation-driven, technology-based sectors are showing signs of relative weakness, while other sectors, such as industrials, energy, and financials are rotating higher off recent support.
Overall, the market is in a 3-day balance that it’s likely to break, come next week. Positive news regarding a vaccine, earnings, and stimulus may help further squeeze shorts as we look to fill the gap above, left from late February.
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Physik, I loved the post you are on point. Can you give me any tips on how to get this profile chart on trading view? Thank You John
Physik
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@johnmazur, thanks for the kind words! To get this same exact setup on TradingView, you'll have to do some tinkering; under indicators search and select "Monthly Weekly & Daily OHLC Viewer," "Visible Range," as well as "Session Volume." After selected, adjust settings according to your parameters.
Nice analysis bro , you should check out my page I also trade indexes
Physik
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@Olutobi-Ogunsemore, thank you! Appreciate the kind words! Checked out the page -- detailed outlooks and consistent updates look really good. Keep it up man!