SPY & IWM At Support, Bounce Likely

With both the SPY & IWM tagging key support, a tradable bounce from current levels is likely. I just closed out some more shorts and taking a modest long position in $SPX & $RUT derivatives for a quick bounce trade with stops somewhat below today's low (on a closing basis as I'll take those positions home, even allowing for a brief opening gap or spike down on Monday). Nothing heavy though as the intermediate-term trend, by all metrics that I follow, is now clearly bearish.

One concern that I have is that QQQ has broken below the 104 support level with next downside target of 100 is still another 3% below current levels, just one more reason to keep things light at this time. With that being said, it would appear that a bounce from at or near current levels, even if we get one more relatively minor thrust down, is quite likely. With that being said, I am heading home net long for the weekend & might add (or subtract) that exposure, depending on how the markets trade after the first 30 minutes on Monday morning.

2015-08-21T15:44:43+00:00 Aug 21, 2015 3:44pm|Categories: Equity Market Analysis|Tags: , , , , , |Comments Off on SPY & IWM At Support, Bounce Likely