Sideways Day


I must say, although I have some short positions on, the market has impressed me since the jobs report on Friday. Those numbers were bullish on rates and bad for stocks (at least short term), but the market has managed to hang in nicely with the exception of yesterday.

Although AAPL disappointed some today because of China growth fears ( and took down the AAPL suppliers hard), the market is staying glued together fairly well.

The S&P sold off decently at the open, but buyers stepped in and closed it green by 3 handles, so that was a good thing.  The Russell 2000 appears very scrappy here and looks like it may also want to break free to the upside. Still so many mixed signals though an the trend is choppy at best for now.

The SPX has tested the 200 day moving average for two days now and has held.  The 21 day moving average is pennies below the 200 day moving average so an important pivot to watch is the 2068 level.  If that level were to break then lateral support from a week or two ago comes into play around 2040-2050.  These are levels I’m watching.

I’m also starting to rethink my biotech short position because the pullback in IBB seems orderly and the sell volume has been modest, showing me that it hasn’t been a rush to “get out”.

Lets see here we go from here. The market has been up for six weeks in a row, so unless this is just a three day pullback (unlikely), we could retest a little lower before we start higher again.

I added ALKS as a new long today at 72.90



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