Friday saw investors back buying the market following the anemic rebound rally on Thursday.
SPX 10 Day Chart
Looking at the S&P 10 day chart set for 30 minutes, below, you can see the drop on Wednesday which seemed to have bottom right near the open on Thursday, at 2352.72, just a few points away from the technical support barrier of 2350.
You can also see that starting on Thursday investors were back buying the market, with a heavy focus on large cap stocks. There are three levels to watch next week. The first is the 2400 level which the S&P has been unable to cross and move higher from. So far the 2400 level has been a great place to buy short products such as the SDOW or SDDD ETFs.
The second is the 2380 level which is light support for the S&P.
The third level is at 2350 which on Thursday morning the market came very close to reaching before it was turned away by buyers picking up shares of stock once the S&P reached 2352. Most investors were waiting for a strong dip in stocks before risking more capital. The drop to 2352 was enough of a dip for most investors, anxious to get into this market.
Friday we saw the rally that had been expected to start on Thursday. The question for Monday now is whether there is more strength still left for the rally.
SPX 10 Day Chart to May 19 2017
Oil Prices
One key to Friday’s rise was a move higher for the price of oil.
Other Articles From Friday
Other articles worth reading from Friday include these trades done on the TSX Composite Index in Canadian dollars.
Two trades on Friday were done using the SPY ETF. These are highly speculative trades designed to profit by studying and following momentum to find entry points. This is a strategy I have used for years with great success. Here was the opening Spy Put trade. Here was the closing Spy Put trade.
Other articles of interest include these three trades, all entered on Friday. Here is trade one, trade two and trade three. These would be worth adding to the watch list for Monday as prices may be better on Monday than what I received today.
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