The market direction outlook for today was for some weakness in the morning but a higher close. This is the same outlook as we saw for Thursday and Friday. The morning weakness though continues to create opportunities which many professional traders are taking advantage of.
Advance and Decline
If we look at the volume on stocks you can see that 51% of stocks are still advancing and declining issues make up 46%. However the number of new highs is at 205 this morning by 11:15 and new lows are just 11. This points to the weakness at present as still showing consolidation. In order for there to be a pull back of any strength the number of new lows and declining volume needs to be a lot higher.
S&P Market Direction – Morning
The one minute intraday chart below from this morning shows the tight range that stocks are in at the start this morning. The 1960 level was almostt broken this morning. That sparked a rally which I used for my first Trading For Pennies Strategy trade this morning. From there the market has not reached the 1964 level which was attempted on Friday. The inability to break through 1964 brought in some light selling which has pushed the market direction back toward 1960. I would expect 1960 to hold this morning and could be the entry point for further Trading For Pennies Strategy trades as well as an entry point for the market direction portfolio.
Market Direction Outlook Into The Afternoon
Stocks still look set to turn positive later today. This may not happen as early as after the lunch hour but perhaps more around the 2:00 PM to 3:00 PM period. Overall I am not expecting stocks to close much above 1962. This morning then we are in a choppy but overall stable trend sideways which I believe will break to the upside later in the day.
Internal Stock and Option Trades Links
Put Selling Strategies For Members
Covered Calls Strategies For Members
Profit And Income Strategies Index
Stock and Option Strategies For Members
Stock And Option Trades Explained For Members