Simply put, there is one thing you want to look for today. How does the market close? The way the market closes today will dictate the next few trading days.
At the start of trading, the markets opened sharply higher. The SPDR S&P 500 ETF Trust SPY hit a high of $170.18. This level was the 200 moving average on the 10 minute chart and also a 61.8% Fibonacci retrace. From that point on, the markets collapsed lower. They briefly went negative before now hovering around the flat line and moving slightly higher.
The bottom line tells us that the market has two paths to follow. One is to float back up on light volume and end with a solid gain on the day. This would be bullish for tomorrow and next week. On the other hand, if the market ends flat to lower, this would be extremely bearish.
Gareth Soloway
InTheMoneyStocks
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