Where We're Looking to Buy the Dip

Active support is our focus point.

Technical Edge — 

• NYSE Breadth: 20.2% Upside Volume (!)

• NASDAQ Breadth: 31.4% Upside Volume 

• VIX: ~$20

Game Plan: S&P, Nasdaq, MCK, APLS

We’ve had a lot of events happen this year that not a lot of traders were around for the last time they happened; it’s been hectic. Like seven straight weeks of declines, for instance. The last time that happened before 2022 was in the dot-com bear market and before that, in the 80s. 

But because so much has happened this year, we have this sort of perpetual feeling of “What now?! What now?! What’s next?!”

It’s okay for the market to have a slow — dare I say boring — climb higher right now. It’s okay for the pullback to be modest and slow and for support to come into play where it’s supposed to. 

Now that that’s in writing though, maybe the SPX will cough up 100 handles and the VIX will rip. But it doesn’t feel like that’s going to happen. Right now, we’re in a low-volume grind as people take some time off and spend the waning bits of summer with their families. 

Let’s look for some support. 

Note: Watch CI and MSFT for the buy-the-dip setups we highlighted yesterday. 

S&P 500 — ES

Yesterday, 4278.75 to 4285 was a key zone of resistance. Let’s see if the ES can reclaim this area, which would unlock a potential push to 4300 to 4305+

On the downside, keep an eye on yesterday’s 4155 low. A break of this level puts the active support via the 10-day ema in play. I’m a buyer at this level. 

S&P 500 — SPY