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Tuesday, September 25, 2018

Daily update 9/25 SPY option data

Gap up sold into.

Intraday strength was sold all day.  Not hard, but constant hitting of the bids.  Breadth was -54%.  New highs were up a bit to 76.  New lows were up quite a bit to 134.  Not good.

The futures are holding on to 20 SMA support so far.  They are up a few points at the moment. 

The counts are right on top of each other.  Sometimes this will spark the bulls into buying. 

The FED is up on tap tomorrow.  We will see how the market reacts to the rate hike and go from there.  The transports and financials saw follow through selling today.  The SOX joined in the selling party at -1.7%.  The cracks in the rally are getting a little bit wider.  If the bulls don't pick it up soon the market could be in for another dip.

Commodity prices and global markets have bounced off their oversold lows.  I can't say yet whether that is a statement on the global economy or just a bounce.  I am watching it to see what is what.  If global markets put in a good bottom it could bode well for U.S. markets to continue the rally.  I would feel much better about that being the case if ECRI would tell us their long lead global indicators had turned up like they did in 2016.  At the last report I saw early this month they said they were still falling.

The SPY option data shows the 285 strike has the most support, but is not very strong.  I can't recall in the time I have been doing this not having a put strike over 100,000 options.  At the moment we do not have nearly as strong option support as we have been having.  The call options show strong resistance at 295 and very strong resistance at 300.


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