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Strategies & Market Trends : Technical analysis for shorts & longs -- Ignore unavailable to you. Want to Upgrade?

To: Johnny Canuck who wrote (59872)	9/5/2024 3:17:05 AM
From: Johnny Canuck	Read Replies (1) \| Respond to of 67879

Index Update SP500 on day two of the impulse down. We expect at least one or two more down days. Interesting the index closed above the open price so it looks like some buyers emerged at this level just above the 50 day EMA. I would expect traders to be waiting for the Friday employment report before committing long or short strongly. It looks like max pain for Friday is 5525.It looks like we trade within a tight range for the next two days. Note the next week the max pain on Friday is 5480 and the monthly expiration is 5400. So a bit of a negative bias over the next 3 weeks. Similar pattern on DOW as the close was above the open but down from the close of the previous day. Some light bargain hunting happening but not enough the reverse the short term impulse down. On a relative basis DOW still stronger than the SP500. Is this a late economic cycle effect??? Interestingly the DOW transports are moving the in opposite direction to the DOW. It is only significant if the divergence continues. For now the lack of new high in the transports still raises questions about the DOW. DOW utilities say the rate cut has not been priced in yet as it set a new high for the year. TLT indicating short term long bond traders also are seeing a more aggressive rate cut. USD indicating the rally was a deadcat bounce. A re-visit of the recent low is positive. A new carry trade issue or something similar being priced in???? COMPQ following the other major indices. Some early bargain hunting coming in, but not enough the reverse the impulse. Russell 2000 also following the major indices. Traders are waiting for a macro issue to be resolved. Financials pausing do to indecision in the market for the macro issue. Energy breaking down. A global recession being priced in? Gold waiting near the 52 week high. A lot will be resolved by the macro news soon I suspect. Consumer discretionary closing above the open and above the close of the previous day. Too soon to reading anything much into the relative strength yet. It is hard to tell if traders are waiting for the employment numbers on Friday or the rate cut on the 17th of the month. Options say the SP500 should continue to show weakness later in the month.