Short & Sweet. Charts + A JPMorgan Setup

Three-day trading week.

Technical Edge 

• NYSE Breadth: 76% Upside Volume

• Advance/Decline: 69% Advance

• VIX: ~$14.50

No commentary this a.m., just a look at the charts.

SPY — Gap-Up Caution

Some weakness to start Wednesday, the question is whether the bulls gobble up the dip or if we see a bit further of a fade. 

Keep an eye on this week’s low near $441. A break of that could usher in a test of the 10-day ema and the gap-fill at $438.28.  

• Upside Levels: $442.50, ~$444

• Downside Levels: $441, ~$438

S&P 500 — ES Futures

Down about 20 to 25 handles to start the day, let’s see if the ES can hold the ~4465 area. Prolonged weakness could usher in the 4418 to 4433 zone. 

• Pivot: 4465

• Upside Levels: 4480-85, 4493-4500, 4520

• Downside levels: 4450, 4430-33, 4415-20

SPX

• Upside Levels: 4442, 4450-60

• Downside Levels: 4422, 4398-4400

QQQ

Similar to SPY. If the QQQ loses this week's low at $367.23, then it opens the door to the 10-day ema and the gap-fill near $365.

• Upside Levels: $369, $371, $373

• Downside Levels: $367.25, $365

JPM

A pretty clean breakout in JPM but it did lose some steam on Monday and is under pressure with the rest of the market on Wednesday. I would love to see the $142.50 to $143.50 area hold as support, particularly if it tests the 10-day. 

Ideally, JPM would have rallied a little bit higher and then pulled back. Still, let’s see if it can hold the breakout to set us up for a longer term swing (weeks to potentially months). 

Open Positions