Wednesday, March 22, 2017
A mixed bag today after yesterdays drop as the Dow shed 6 points on average volume. The S&P 500 and the NASDAQ were positive. The advance/declines were slightly positive. The summation index continues lower. I can make a case for a bounce here but for now I'm going to wait to purchase the SPY April calls. The short term technical indicators for the S&P are in the oversold zone. However I do think that after yesterdays debacle, lower prices will be seen in the coming days. Ideally we'd get to the 2300 level on the S&P 500 but the market rarely cooperates with plans. So we'll keep an eye on things and see what develops. GE was up 1/8 on average volume. Gold was up a couple bucks, while the US dollar was slightly lower. The XAU had a slight fractional gain and GDX was flat. Volume was average. Mentally I'm feeling OK. The small stocks performed better today and that's a positive. The oversold nature of things here is also in the bulls corner. There's also a potential positive divergence on the McClellan oscillator to watch. However there's some background headline noise to deal with. A terrorist attack in London combined with a vote on Trumps health care proposal. The attack has already been digested by the market in my opinion. But we'll have to see what happens tomorrow. Europe and Asia were lower overnight. 2 days left in the week but it doesn't appear that a decent opportunity will present itself. On to Thursday.