TODAY'S ACTION

Doji day! Yes it was. Nothing really happened and the day was plastered with indecisiveness. If you tried to get in-and-out throughout the day, chances are that you didn't end up green. Typically, I would enter short positions at the end of the day, but today proved, once again, that the market likes to show its altered personality in the last half hour of trading. Thus, I remained in cash once again. Days like yesterday mark a 50/50 chance for a sharp movement in either direction, and it's usually a reversal. Many sectors look like they will reverse imminently, so be warned (Example: Solars).

SPX 1-day

SPX 3-day

SPX 10-day

SPX 6-month

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TUESDAY's BREAKOUTS & BREAKDOWNS

We still don’t have many solid breakouts despite the large three day rally we’ve had so far. We have a steady number of breakdowns each day but they no longer hit thousands in number. The most promising gauge? The new highs-new lows index. The market hitting 235 new lows is actually bullish compared to some of the numbers we’ve seen last month (Oct 10: 22 New Highs/4,340 New Lows!!!). Yesterday formed a doji, or indecision day, and that means the market can go in either direction, nearly 50/50. Usually, this determination is made on the opening gap, depending on its size. There’s a mix of spiker plays, possible double bottoms, and a few breakdowns, all for educational purposes to be used in the future.

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MARKET CARPET

Very mixed - Doji Day

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TODAY'S UPGRADES & DOWNGRADES

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