Rally More or Reverse? Here's How to Navigate the Market Right Now

The S&P has clear levels to watch. So do bonds.

If you don’t have time this morning, please take a few minutes sometime today to view our “Big Picture” video on the S&P 500. It highlights this year’s key pattern thus far (3-wave vs. 5-wave moves) and lays out a few possible scenarios ahead of next week’s Fed event. 

Good luck today!

---

Technical Edge — Game Plan 

• NYSE Breadth: 46.2% Upside Volume

• NASDAQ Breadth: 70.2% Upside Volume 

Volatility is again expanding and the ranges are becoming wider. We talked about stop-losses in the video and what they can signal in these types of environments. For now, we continue to focus on the indices, as individual stock trades become too “iffy” in this type of environment. 

Yesterday the markets posted a reversal and it will be key to see if it can gain momentum from here or if it stalls out. 

S&P 500 (ES and SPY), Bonds (TLT) and Individual Stocks

The “Big Picture” of the S&P is laid out in the video. For today, my approach is simple: