The Daily Drip

Markets review, strategy and analysis

SP500.

After a strong closing week, we begin trading with a gain of almost 1% for the world's most watched index. The weekly count expects a further rise in wave ((iii)) of 3.

Here on the daily, we can see the overpass of 5566, a level we mentioned prior as highly important for providing further evidence of market strength. Today’s high and close were 5608. Any throwbacks lower after this action should be met with buying, with most bids probably lined up near 5400. It seems that the market is caught a little short, with many not accepting the fact that the “crisis” from early August might have been a one-trick pony. The VIX has been completely annihilated.

The technical page confirms the action with the RSI breaking 50 and the PPO sneaking above 0. The lows of the last three trading days are also above all the key moving averages. The volume has been dropping slightly but of no concern just yet.