Morning Market Rap 01/20/22 by CTG
SPY / QQQ / Vix
SPY 5 days, hourly candles S&P futures slightly broke yesterdays lows right after futures opened; then reversed into a bounce that's once again cooling off the shorter term oversold hourly, 4hr RSI's, and taking the gap down open off the table 450.88 the corresponding futures low
454.50 the corresponding futures high
SPY 3 months, daily candles Daily downtrend saw follow thru yesterday, into a test of the December lows and 150 day MA 451.46 the low from yesterday and first support
449.68 the 150 day MA
448.92 the December low
441.48 the 200 day MA 459.61 the high from yesterday and first resistance on this timeframe
466.42 the 50 day MA overhead and declining
QQQ 5 days, hourly candles Nasdaq futures with similar action - slight break of yesterdays lows straight into a bounce, taking the gap down open off the table. We'll see if we need to re-test those futures lows after the open. That's a spot to scout to trade against same as yesterday. 365.54 the corresponding futures low
370.00 corresponding futures high
QQQ 6 months, daily candles Testing the 200 day MA area here as the daily RSI inches closer to oversold territory 366.21 the low from yesterday and first support
(365.54 the futures low)
365.35 the 200 day MA
360.69 open gap from last October
356.48 area next
350.32 October low after that 374.69 first resistance on this timeframe
375.75 the 150 day MA
376.22 after that
IWM 1 year, daily candles and weekly candle view Breaking the 1 year range bearish (after breaking it bullish in Nov last year) and falling off the volume profile shelf into a much lighter area.
Daily RSI is clicking into oversold territory so reasonable to still be scouting some type of shorter term relief bounce. Daily RSI pushed to the 22-23 level in early December before seeing a relief bounce, so that's something I'd be keeping an eye on. IWM weekly candles going back to the Covid lows: 190.94 was the low from '21 so that's a possible area to look to trade a bounce against, if we keep going straight down on this sequence. Daily RSI would be crushed, and the weekly RSI would get oversold somewhere around, just above that level.
Seems reasonable to scout a starter position here, and have room to add if we keep selling into those levels with no relief first, especially if you have a longer term mindset. Any relief bounces I'd look to take some off and improve my cost basis with a "trade around a core" mindset.
Feb Vix futures 3 months, daily candles Higher highs seen here yesterday; So far today we've failed at yesterdays highs, and are taking about half of yesterdays move back.
Spot Vix 3 months, daily candles Higher highs here yesterday as well over the 1/10 23.33 highs, and finding itself in a little daily uptrend. The higher we go, the wider the intra day ranges will get on everything.
27.39 was the 12/20 high, and that's an area to look at next if vol bulls maintain the uptrend, and the indices keep selling.
The higher it goes, the harder it gets to maintain those levels tho as well; Along with the higher potential of a big giveback.