MPEndofDayD101822 Each of the U.S. indices we track closed higher on the day. The spot VIX index remains above its 50-day EMA (24.56), meaning that the S&P 500 is not out of the woods. More likley than not, the rally extends itself overnight. That being said, the 60 & 240-minute time frames have bullish TAS Market Breadth and thus a further rally may unfold. The daily ES generarted a Bullish Engulfing candle which adds to Friday’s bullish Hammer candle that confirmed a “buy the D point” pattern, which suggests a rally to its OUL, currently 3895. The 60-minute chart should...

MPEndofDayC101822 Each of the U.S. indices we track closed higher on the day. The spot VIX index remains above its 50-day EMA (24.56), meaning that the S&P 500 is not out of the woods. More likley than not, the rally extends itself overnight. That being said, the 60 & 240-minute time frames have bullish TAS Market Breadth and thus a further rally may unfold. The daily ES generarted a Bullish Engulfing candle which adds to Friday’s bullish Hammer candle that confirmed a “buy the D point” pattern, which suggests a rally to its OUL, currently 3895. The 60-minute chart should...

  Each of the U.S. indices we track closed lower on the day.     The ES still retains its TD9 & “buy the D point” patterns, while the NQ retains its “buy the D point” pattern. The YM negated its TD9 and “buy the D point” pattern today and the RTY does not have a bottom signal and price is now below its TD9 breakout level, 1806.80. In other words, we have mixed messages at days end.   Today’s index signal changes:    The DOW cash index closed below the low of its TD9 bottom today which negates...

We are going to sell some SPY Volatility going into CPI tomorrow, with a butterfly options trade in the SPY options that expires Friday, October 21st (Next Friday).  The VIX is currently trading at $33.49. We very well may get some volatility over the next week and a half, but the market is paying a premium right now and this is a nice risk vs. reward set up. We may not hold this trade through expiration, obviously depending on how the market moves. All options expire Friday, October 21st. Be aware that the SPY also has options that expire on Mondays...

MP101722Daily Last Friday’s price action showed us the power of the top of the daily profiles for the ES, NQ and RTY. The NQ made a round trip, meaning that its tested both the top and bottom of its daily profile. Also shown on these charts are the current trend lines which can act as resistance on a move higher. The NQ has not closed above the top of its daily profile for two consecutive sessions since August 16th and therefore a signal of trend change would be two consecutive closes above profile. In summary, the ES and NQ are...