Well, what a wild Friday. The market traded in a 3% range trying to digest the unemployment reports. Lots of mixed signals right now. So it looks like we're back in No Man's Land. Step back and still look at the bigger picture, we are still in a downtrend channel. We had three down days last week with a doji on Thursday and a bounce on Friday. Characteristics of a bull pull back right? Well than, what does the Nasdaq chart tell you? Cause that thing looks way more bearish.
CPI report is going to say a lot and there's a good chance that inflation could come in higher than expected. By the end of this week, we should know where this market is going to go. It feels like I say that every week! -"By the end of this week, we should know where this market is going to go."-!!!! It's definitely been confusing the last few weeks. I mean look at the VIX. This thing said "what's up!?" to 24 on Friday. My 40,50 VIX number I've had in my mind the last couple weeks is still patiently waiting. The elements of "hope" are lingering in these markets. Here's what could happen this week: We might hang out here in this 3800 area today and tomorrow. But we could also go test the 3850ish area. I'd pay attention to the price action in that area. It would test the upper downward trend line from the August 6th high.
Plan for today: Really just going to sit on my hands today and watch the market. Be patient, stay disciplined and trade the markets in front of you. Happy Trading!
Plan for today: Really just going to sit on my hands today and watch the market. Be patient, stay disciplined and trade the markets in front of you. Happy Trading!