Market Is Rangebound; A Trade in Microsoft

The S&P is stuck between 3800 and 3900

Technical Edge — 

• NYSE Breadth: 48% Upside Volume

• Advance/Decline: 60% Advance 

• VIX: ~$23

Tesla got smoked yesterday and Apple is finally feeling the pressure. I am going to do a piece on AAPL later today or tomorrow, as there are some interesting reads into the company and its stock now that the share price is finally feeling the heat. 

I don’t know where the low is or when it will come. What I do know is that AAPL and TSLA continue to make new 52-week lows and they account for almost $2.5 trillion in combined market caps. 

Throw in the rest of FAANG and MSFT and it’s not hard to see why tech and the SPX are having so much trouble right now. 

Be sure to check out the Open Positions tab below, as we were able to trim on yesterday’s push and now focus on new levels and risk control. 

S&P 500 — ES

The ES is trapped between 3900-3920 on the upside, while 3800 is support. 

The S&P has fallen in four straight weeks and maybe this week acts as reprieve. Either way, there’s not much to do until this range breaks. 

Over 3920 puts the ES back above the 10-day, 21-day and 50-day moving averages, as well as last week’s high and the key 3920 pivot. That opens the door for a potential push to 3985, then 4000. 

On the downside, a break of 3800 puts 3761 in play. 

SPY Is basically the same thing. $386-87 has been resistance, with the larger resistance level sitting up at $390. On the downside, $375-76 has been support. Ultimately, we need a range break. 

QQQ