Thursday saw the S&P 500 via SPY hit a low for the year of 385.15 at 1:48 p.m. EDT and by the close of trading was at 392.41. Along the way, our QPI Liquidity Measure turned positive at 2:15 p.m. Thursday. Friday saw liquidity remain positive until it turned negative at 12:51 p.m. EDT into 2:42 p.m.
Then liquidity turned positive again into the last hour of trading enabling SPY to rally back above $400 and close at $401.69. That fact that SPY did not collapse and break below $397 is telling. Instead SPY rallied back in the 3:00 p.m. hour. Liquidity did turn a tad negative at 3:48 p.m. So now we await Monday morning action with some anticipation. Before you begin to think I am an idiot for suggesting more strength you need to follow the logic.
We understand the bigger picture of bias in our work is negative on a monthly, weekly and daily basis. Bias tells us whether we want to be long or short. Yet we are not in the camp that “the world is coming to an end” which many on social media seem to be in that camp, i.e. a repeat of 2000-2002 or 2007-2009.
The bears have been in control for the last 4 and a 1/2 month and with this two day turnaround we have to wonder if it can turn into something bigger? Or will it be another case disappointment for the bulls?
Of late, Monday mornings have been “sell the market” events. Either straight down on the Monday open or down with an attempted rally that fails later in the week. We note that on a weekly basis the S&P 500 has fallen six weeks in a row which could support a continuation of the Thursday bounce.
We are going to make a real effort to post here a couple times a week so if you like it tell your friends, retweet and just continue reading. Clearly, we have a subject to write about Monday after the close. Until then, enjoy the rest of your weekend,
Has The S&P 500 Started A Meaningful Rally?
Has The S&P 500 Started A Meaningful Rally?
Has The S&P 500 Started A Meaningful Rally?
Thursday saw the S&P 500 via SPY hit a low for the year of 385.15 at 1:48 p.m. EDT and by the close of trading was at 392.41. Along the way, our QPI Liquidity Measure turned positive at 2:15 p.m. Thursday. Friday saw liquidity remain positive until it turned negative at 12:51 p.m. EDT into 2:42 p.m.
Then liquidity turned positive again into the last hour of trading enabling SPY to rally back above $400 and close at $401.69. That fact that SPY did not collapse and break below $397 is telling. Instead SPY rallied back in the 3:00 p.m. hour. Liquidity did turn a tad negative at 3:48 p.m. So now we await Monday morning action with some anticipation. Before you begin to think I am an idiot for suggesting more strength you need to follow the logic.
We understand the bigger picture of bias in our work is negative on a monthly, weekly and daily basis. Bias tells us whether we want to be long or short. Yet we are not in the camp that “the world is coming to an end” which many on social media seem to be in that camp, i.e. a repeat of 2000-2002 or 2007-2009.
The bears have been in control for the last 4 and a 1/2 month and with this two day turnaround we have to wonder if it can turn into something bigger? Or will it be another case disappointment for the bulls?
Of late, Monday mornings have been “sell the market” events. Either straight down on the Monday open or down with an attempted rally that fails later in the week. We note that on a weekly basis the S&P 500 has fallen six weeks in a row which could support a continuation of the Thursday bounce.
We are going to make a real effort to post here a couple times a week so if you like it tell your friends, retweet and just continue reading. Clearly, we have a subject to write about Monday after the close. Until then, enjoy the rest of your weekend,