S&P 'Indecision' Could Leave Clues for Next Move

AVGO and CRM set up for potential trade

Technical Edge — 

• NYSE Breadth: 48% Upside Volume 

• Advance/Decline: 50% Advance 

• VIX: ~$19.50

Yesterday was slop-city, as the S&P spent most of the day chopping in a relatively tight range, going nowhere fast. Even the late-day rip left it near unchanged on the day, while breadth was basically 50-50. 

That does give us something to navigate on the daily chart though, given that we were left with a sort of indecision candle. 

It’s encouraging that semiconductors keep trading so well. We have been able to punch out some profit in this space and it’s also a bullish indicator that they are trading well. Although banks have been trading poorly, kind of negating that observation a bit. 

S&P 500 — ES 

For now, 4000-4010 is still resistance. Above that and 4012 and 4027 are the next layer of resistance on our chart (that’s the 10-day + 50-day combo, then the 50% retracement, respectively). 

On the downside, ~3980 is still the pivot. Below it puts yesterday’s low in play at 3971.50. Below that puts 3950 to 3959 is in play. 

SPY