Here Are the Dips We're Looking to Buy

Bulls need to take a rest, it's the healthy thing to do.

Technical Edge — 

• NYSE Breadth: 65% Upside Volume

• NASDAQ Breadth: 45% Upside Volume 

• VIX: ~$20.50

Game Plan: S&P, Nasdaq, MSFT, CI, AR, BMRN

It’s been a while since we’ve tested active support and we’re coming into some “obvious” resistance on the indices. Let’s look for buyable setups as the bulls remain in control. 

The one wild card here? The Fed. 

The FOMC Minutes are due up today (no rate decision) but the Fed’s rhetoric could be market-moving. Yes, inflation decreased from the prior month, but it’s still very high. The Fed may want to do some more jawboning, which could pressure extended markets. 

S&P 500 — ES

Tagged the 200-day yesterday and now flirting with a rotation below yesterday’s low at 4278.75. 

A break of this level that isn’t reclaimed puts the 10-day ema in play, which has been very active support over the last month. Just look at where the buyers have stepped in in the past. 

We will do what works until it doesn’t. 

S&P 500 — SPY