Jonathan Krinsky of Miller Tabak sends along his characterization of the stock market right now, and the title of his email is: ‘Another Opening Fade’.
Indeed the pattern of this market is that any strength is being sold.
The pattern of late continues, with an up opening being faded. S&P Futures are approaching their lows from yesterday around 1365. A breach of that gets us to Friday’s lows of 1363.50, which occurred prior to the Cash open. Below that, and there is a bit of an air pocket down to the August 2nd and 3rd lows around 1343-1353 (1354-1365 – S&P Cash).
This has the potential to create a bit of a wash out and the fully oversold readings we have been looking for, especially if the S&P Cash gets down to that 1354 area.
Here’s a recent chart of the S&P. With the exception of Friday, strength leading to weakness ahs been the pattern.
Fromm Yahoo Finance:
Photo: Yahoo Finance
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