Where Are We Now?

The market fell yesterday, one day after the FED cut rates for a 3rd time this year.   A late day rally brought the market back to a slight loss, from steeper losses earlier in the session.

This week remains... a week of digestion.  Prices have not wavered much from Mondays  open.

I think we can expect more of the same today.  But what about next week and beyond?

I still think more record highs are coming before years end.  But just like September I think odds are increasing for some downside first.

Momentum has yet to roll over.  However small caps are starting to lag, and they've been a good foreshadow for the rest of the market the last few years.

Strong support for IWM is at the bottom of this current channel.

$QQQ resistance rests right at $200.  That's about 1% away.

As is resistance for the SPY just above $306.

In each case momentum has not triggered a sell signal just yet.  This could very well be consolidation before an explosive move higher.

We hit more record highs this week.  And yet I do not see euphoria.  Head over to any of the major financial sites like CNBC or Market watch and you are more apt to see reasons why this market will fall, rather than expectations of more upside.

The reasons the bears give for this market to fall... and they've been giving the same reasons almost every year for the last 10... is exactly why this market continues to rally... and why it will likely continue to do so into 2020.

With that being said momentum could be waning here and a sell signal flip would confirm a move lower over the short term could be in store.  However nothing is set in stone just yet.  And clearly earnings haven't given investors a reason to sell just yet.

Have a great day!

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.

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