S&P 500 and Dow Sit at Critical Support

Here's how we're approaching the setup.

• NYSE Breadth: 16% Upside Volume (!)

• Advance/Decline: 34% Advance 

• VIX: ~$24.50

We were able to book some gains in CCRN and TLT yesterday, as bonds continue to trade pretty well. Both positions will move to a breakeven or better stop-loss now to prevent any of our gains from turning into outright losses. 

I will keep today’s note short for the futures traders, as the level we have been talking about all week is coming into play. I will try to be back with a few other setups later this morning. 

Technical Edge: S&P, Dow, Nasdaq, Gold, Stocks

S&P 500 — ES 

This is the test we have been talking about all week: 3920. 

This level has been a key support/resistance pivot for months now and it’s also where the October high comes into play (at 3924.25) and where the 10-day ema comes into play (currently near 3915).

This is the test for the bulls to prove they have active control of the S&P. 

If we catch a bounce from this area, I’d love to trim in the 3950 to 3960 area, which was prior support that failed during Globex.  

SPY — Daily