The Correction We Asked for and Needed

A setup in AMD

Technical Edge 

• NYSE Breadth: 40% Upside Volume

• Advance/Decline: 50% Advance

• VIX: ~$14

Two things to note. 

First, the S&P and Nasdaq sit at key junctures. Not life or death levels, but sitting at roughly the 50% retracement and 10-day moving averages, active bulls need to defend this area to keep the trend intact. 

Failure to do so does not mark the end of the bull run, but it could give bears a bit more life in the short term. 

Two, for those that trade our individual stocks names, we are (hopefully) positioned well with two longs and two shorts, although both sides have been volatile. Keep your size right and we sift through the volatility a bit. I will likely give our trades the opening hour to set their ranges before considering a stop-out (unless the losses turn violent). 

Let’s see how it shapes up today. 

SPY

• Upside Levels: $435, $437.50, $439 to $440

• Downside Levels: $434.75 + 10-day ema, $432.50, $429.50

S&P 500 — ES