A lot can change overnight, however today's late day action set the table for what lies ahead the next few days. Of course nothing is set in stone.
Today looked like a consolidation day. The market was digesting the Vaccine news, much like it was digesting the Gilead treatment news a few weeks ago,
And then late in the session that positive vaccine news, that helped fan the flames of yesterdays rally, looks to have been negated. And the market pulled back.
I was sitting on my hands today because absent a break over resistance, which is what I thought had a good chance of happening, we ran the risk of a deja vu... which looks to be what happened instead.
Here is the QQQ. Todays action, on the cusp of breaking out, instead kissed the topside of the channel and failed. I think we could see the lows $220's for $QQQ over the next few days.
QQQ:
and here is the $SPY.
Resistance has been respected twice already and today was the 3rd time, Of course there is a chance we just rally back up and break it overnight. No doubt about it. With the FED and the Gov't throwing trillions upon trillions of $$$ at this market, its no wonder we aren't at $SPY $310 already. However the chart has failed again. And I think the odds favor another reset for the $SPY in the mid to low $280's before we try again to breakout.
after yesterdays opening gap and grind.... the $SPY was clinging to support/resistance. It looked poised to break and hold above... BULLISH and a time to get into calls.. instead another late day swoon sets us up for possibly more downside the next few days.
It could be a case of the market running out of gas... it may take a few days to refill that tank.
We shall see.