Click here to get a PDF of this post

  1. Currently the stock market is still in a trading range. Stocks as an asset class are not under accumulation or distribution, they are being traded.
  2. $QQQ is the strongest index ETF as it is still holding above the 200 day SMA.
  3. $DIA $SPY and $IWM are all trading under their 200 day SMA as long as side caution is still warranted.
  4. This is not a time to be an investor in a stock this is a time to trade price action on short time frames.
  5. The $VIX did not go up today, and that is a good sign for bulls.
  6. The $NYMO is neutral so the market is not showing oversold or overbought.
  7. Down days continue to be highe than up days, so caution is still warranted on the long side.
  8. We are still in a buy weakness sell strength market because a break out in trend has not occurred in over a year.
  9. 2016 is not in a downtrend yet because the lows held today and the support levels listed below have held so far.
  10. We must stay flexible on which way the market is going until we see a breakout or strong signals confirming a move. One gap down doesn’t make a downtrend. but lower lows and lower highs will confirm a downtrend.

The four key support levels:

  1. $SPY $198.50
  2. $IWM $109
  3. $DIA $169
  4. $QQQ 200 day simple moving average