Clicky

A Second Chance: Stock Market To Gap Into Resistance

With 1-hour before the markets opens, QQQ is currently indicated to gap just shy of the former critical support, now solid resistance zone of 116-115.75, thereby offering a very objective short entry or add-on to an existing short position with a stop on a solid one or two day close 1-2% above the 116.00 level. Previous & updated daily chart (as of Friday's close, not reflecting today's pre-market trades):

Likewise, SPY is currently indicated to gap smack in the middle of the former critical support, now solid resistance zone of 212.20-211, thereby also offering a very objective short entry or add-on to an existing short position with the appropriate stops based slightly above the top of the 212.20 level on a daily or two-day closing basis. Previous & updated daily chart (not reflective of today's pre-market trading):

2016-11-07T08:44:39+00:00Nov 7, 2016 8:44am|Categories: Equity Market Analysis|Tags: , , , |4 Comments

4 Comments

  1. Shambo November 7, 2016 9:15 am at 9:15 am

    thanks Randy. I was long SPY from Friday’s close, but covered pre-market on the nice gap, that was a gift. Now will look for intraday triggers to re-enter shorts.

  2. fu2016 November 7, 2016 10:03 am at 10:03 am

    Hey Randy, do you expect the outcome of the election to have an effect long-term, or will any post-election rallies be short-lived (assuming Hillary wins)?

    • rsotc November 7, 2016 11:02 am at 11:02 am

      @fu2016 I agree with just about everything that David Stockton said in the video that @pkm48193 posted below, including the fact that this market is likely to drop regardless of which candidate wins the election.
      It appears to me that the evidence in the charts is overwhelmingly bearish & I also agree with the other points that he mentions regarding fundamentals, including the declines in tax receipts from the IRS despite what appears to some rosy employment reports recently. In fact, @joefriday has been posting a chart highlighting the declining tax receipts from the IRA for a while as an indication that all is not as well under the hood as some of the recent economic reports (which are often revised downward after-the fact) would indicate.

  3. fu2016 November 7, 2016 11:39 am at 11:39 am

    Thanks for your reply, Randy!

Comments are closed.