Thursday, October 01, 2015
A mixed picture today as the Dow fell 12 points on good volume. The advance/declines were barely negative. The overall market was stronger than the Dow. We did come off of lower levels during the day and that's a positive. The summation index is still heading lower but not as strongly as before. The positive divergences that we saw earlier in the week may be valid. It will all depend on the market reaction to the employment report tomorrow. I still have the SPY October calls and they are still showing a loss. GE was off a few cents on good volume. We came back from lower levels here as well. Gold was off a couple bucks on the futures and the US dollar was slightly lower. The XAU was off a point and GDX lost 1/3. Volume was average. No interest in gold and that has been the story there for a while. Mentally I'm feeling OK. There are potential double bottoms on the daily charts for the major stock indices. If we are up tomorrow that would strengthen the double bottom scenario. I certainly don't know which way we will go. If we do move higher, resistance for the S&P 500 remains at the 1945 level. That is where the downtrend line is from the end of August. If we do get there, I should probably dump the SPY October calls for whatever they're worth. I do not expect to get through that line on the first attempt. Of course we could just roll over tomorrow and make new lows as well. So tomorrow is another important day for the stock market. I am however, encouraged by todays price action. So we'll see. The foreign markets were mixed last night. We'll await Fridays jobs report and close out the week tomorrow.
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