Quick Morning Perspective

The market swung between gains and losses yesterday, with losses growing after the Iran announcement.   However as the closing bell neared those losses shrunk until ultimately the market closed right where it closed the previous session.

The first two sessions of this week show a market that is directionless.   It could be viewed as consolidation after the sharp move higher we saw late Thursday and Friday.  However until the market resolves out of the wedge, I think intra-day chop will remain a theme.

The VIX is still hanging around that 15 level.  In a similar fashion, the VIX is setting up for another sharp move.

Shorter term S&P500 futures are up against resistance.  This particular area has sparked a rapid decline several times already in 2018.

S&P500 futures shorter time frame:

A break and hold above this resistance would increase the odds of a strong wedge break to the upside.   Either way this current narrowing of price has not been conducive to short term trend trading,  and entering positions with confidence.    However each session brings us closer to resolution of the wedge of boom/doom.

See you in the chat room.


Known to most as Uranium Pinto Beans, Jason has more than 15 years under his belt of trading stocks, options and currencies. His expertise primarily lies in chart analysis, and he has a strong eye for undervalued stock. Because he’s got the ability to identify great risk/reward trades he usually enjoys taking the path less traveled and reaping the benefits from the adventure.

He is a co-founder of Option Millionaires, and he is best known for his weekly webinars with Scott, as well as his high level training webinars and charts found in the forums.

More Posts by UPB: View All | Private Twitter Feed: Access Now! (For Diamond Members)

Leave a Reply