Trading Recap For Thursday
In the Trading Recap, we look at how the four major Equity Index ETFs traded - SPY, QQQ, IWM and DIA. There was no winner today only losers. QQQ fell by -3.06% and IWM fell by -3.04%. SPY lost -1.45%. Meanwhile, the Dow only lost -0.43%. The trend of Wednesday's action from 3:00 to 4:00 continued in spades today as there was little upside action with the exception of the Russell 2000 into lunch time.
Today the indexes all fell hard in the last two hours. Something we have not seen in a while.At least, they did not go our on the lows of the day, but it was close.
Yesterday we noted that, "... both SPY and DIA are back to overbought on my proprietary RSI Indicator but it could be good overbought where the score stays above 70. IWM and QQQ see their scores in the 60s.With the Fed out of the way for now, I expect a test of 4000 on the S&P 500 and 400 on SPY before the week closes out. We will play this idea in Options Index Trader tomorrow".
Clearly, that outcome did not play out and the test of 4000 this week now seems unlikely, veryu. However, this is a strange market. We sat on the sidelines on Options Index Trader and will wait for a better opportunity tomorrow.
Quadruple witch now has me guessing and I am not sure if we will bounce, remain flat or puke even more. So far futures are flat and we need to see how the overnight trading goes. I might put up some comments in the morning an hour or two into the day.
Have a good night,