Wednesday, August 7, 2013

Market Look'Beck'

Under The Hood

When we say "under the hood" we mean market internals, ie: what was really happening behind the scenes. ShadowTraders who listen to our daily broadcast every day live on the thinkorswim platform know that all closing figures on the major averages should only be interpreted in the context of market internals. Look for convergences and divergences in the breadth, a/d line, and trin figures below to either confirm or cast doubt on what all those talking heads on TV are telling you.

Dow Jones Industrial Average 15518.74 -93.39 -0.60%
S&P 500 Index 1697.37 -9.77 -0.57%
Nasdaq Composite 3665.76 -27.18 -0.74%
Nasdaq 100 3122.19 -20.98 -0.67%
Russell 2000 1052.13 -10.87 -1.02%
Spot Gold 1282.61 -21.26 -1.63%
Crude Oil 105.65 -0.88 -0.83%
NYSE Overall Volume 3,095,556K n/a 23.59%
Nasdaq Overall Volume 1,528,400K n/a 4.75%
NYSE Breadth 3.45 : 1 negative
Nasdaq Breadth 2.99 : 1 negative
NYSE Breadth Ratio 22.48
Nasdaq Breadth Ratio 25.04
NYSE Advancers/Decliners -1505
Nasdaq Advancers/Decliners -975
NYSE Trin 1.16
Nasdaq Trin 1.27
$VIX 12.72 0.88

Looking Ahead

Market Outlook - Check here daily for the current S&P 500 Monthly, Weekly, and Daily bias.

MONTHLY - Bullish. Expansion of range made July bar large with a new all time high.

WEEKLY - Bullish. S&P 500 Index Weekly bar closing at new all-time high.

DAILY - Bearish to Neutral. Small pullback in broad market which could lead to support at 1688.00 in SPX which is the rising 20 SMA on the daily.
Good morning traders. In the Sector Trend Scores section below, we note the broad market is nearly oversold. A lower close today will put the market in this condition. This is one of the reasons we believe the S&P 500 Index (SPY) will find support at its twenty day simple moving average. Please observe the chart below.

The green line illustrates the twenty day simple moving average which closed at 168.75 yesterday. This level ties in with the prior five day consolidation area circled in blue.
These technical points along with Sector Trend Scores oversold projection, and the fact that large sellers did not participate in yesterday's pullback leads ShadowTrader Swing Trader to believe the market is not done moving higher.

Market Profile and Pivot Points for ES and NQ for Wednesday

Value Area High 1694.50 3122.00
Point of Control 1692.50 3116.50
Value Area Low 1690.50 3108.50
R3 1711.83 3164.08
R2 1706.17 3150.17
R1 1700.08 3134.08
Pivot 1694.42 3120.17
S1 1688.33 3104.08
S2 1682.67 3090.17
S3 1676.58 3074.08