Alex's daily Market update & Focuslist - 09/28
The market bounce on US$, Bonds & UK monetary policy!
Good evening traders! 👋
What we’ll cover in the Newsletter tonight:
General market analysis ($NQ/$ES levels)
Market Breadth & Internals
Economic Calendar
Sectors Review
Leaders list
Alex’s Portfolio update
Focuslist including setups, alert levels & explanation
GENERAL MARKET ANALYSIS ($NQ/$ES levels)
NASDAQ ($NQ) Daily
One day is not a trend, but this is interesting!
Last night, the market tried to break below that 11229$ Friday’s low pivot, and this morning we got the BoE (UK central bank) news that they will start back QE (quantitative easing) to basically save the market. That sparked a bounce in the US as well.
We then reclaimed that 11229$ pivot and got a pretty hard & sustained rally all day long to finally close above the 11354$ pivot & the 5dma I was watching closely for a long entry.
As I said, one day is not a trend, and we’ll have a lot of overhead supply and potential resistance levels, area & moving averages to work if we continue. The first two are the 10dma & the 11689/11794$ area. (1/2% move up)
$NQ levels on the upside
11689/11794$ area
the 10dma
$NQ levels on the downside
The 5dma
11534$ level that we just broke will be important on a potential retest tomorrow - I want to see it hold
11229$ level
11285/11068$ area
11068$ level
S&P500 ($ES) Daily
$ES levels on the upside
3735/3780$ area is now the most important resistance above
the 10dma
$ES levels on the downside
3639$ June low that we TESTED & even undercut again today is still a very important level
3596$ level
MARKET BREADTH & INTERNALS
NYHL (New 52W Highs - Lows) - Big improvement here but still net new lows @ -282.
NYAD (Net Adv/Decl) - Highest participation of the last YEAR @ 2416 advances...
MMTH (Stocks > 200dma - LT breadth) - Big bounce here from the recent oversold support area and also reclaim of that 18.16% pivot
MMFI (Stocks > 50dma - MT breadth) - Reclaim of the 12.03$ & 15.52$ pivot today and a close barely above the 5dma. This is a very powerful oversold bounce.
MMTW (Stocks > 20dma - ST breadth) - Very strong from the oversold area and now back above recent area @ 14.30% level. Closed just below the 10dma. We’ll see if we can follow through tomorrow.
MCOSINYA (McClellan Oscillator) - McClellan oscillator improving @ -170, going in the right direction
VIX - VIX with a BIG reversal and a rejection of 35 at the open. We closed below the recent swing high pivot, last 2 days close and also the 5dma.
PCCE (PUT/CALL EQUITY RATIO) - 0.903
DXY (US $) - This is where the weight on the market came off IMO. the recent correlation between DXY & the market was very high and that big reversal certainly helped relieve a lot of pressure. We’ll have to see if we can follow through in the following days.
US10Y (US 10Y bond yield) - This is ALSO where the weight on the market came off IMO. the recent correlation between the 10Y & the market was very high and that big reversal certainly helped relieve a lot of pressure. We’ll have to see if we can follow through in the following days.
IEI/HYG (Credit Spread) - Credit Spread with a false breakout again today. This is good action for the market.
BTC/USD (Bitcoin) - BTC saves the game once again. Another bounce off the support area bottom level and closed above 5/10dma.
This was a FREE preview of my daily Market update & Focuslist letter. In the following sections, I’ll cover important parts of my daily routine & preparation for tomorrow’s trading day that you don’t want to miss!
If you care to read about 5 such posts every week, then subscribe below to join the PrimeTrading community!
Keep reading with a 7-day free trial
Subscribe to PrimeTrading to keep reading this post and get 7 days of free access to the full post archives.