Today was a definite sideways day with the media focused on the latest President Trump “flap” and investors ignoring it almost entirely. The S&P held the 2400 level although, as expected there was a dip below it. The problem the S&P faces presently is a lack of buyers while at the same time a lack of sellers is keeping the market from falling.
With the third week of May now entering the mid-week point, Wednesdays have tended to be more volatile than usual since the start of the year so tomorrow we could see the S&P try to move to the 2410 level.
For now the market is holding up well. The 2325 level on the chart below is the “line in the sand” so to speak. It is the point where any pullback or short-term correction should end. If it doesn’t then we could see a lower S&P into the summer months.
Oil Prices
One key to the market has been oil prices which have been rising lately. On Tuesday oil prices fell lower.
Morning Open Should See Weakness
For Wednesday morning, expect some weakness in stocks but then a move higher should break the 2400 level again.
Wednesday’s Outlook
After the markets closed today, I posted the market breadth indicators for the TSX and the S&P as well as the NASDAQ that I am expecting to do well in.
There were quite a few Super Charge Buy-Write Strategy trades today along with 4 trade ahead of earnings strategy setups.
An upgrade today in YUM! Brands led to more Put Selling and this article explains the importance of upgrade notices on stocks being traded. I also updated the Tomorrow’s Trade for Tuesday and outlined three different trades that were entered.
The day started with a new trade in Facebook Stock as well as an outline of another trade being planned at present.
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