Daily Commentary: August 01, 2024

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How High and How Long?

Posted by Pete Stolcers on August 01
www.oneoption.com

The market is going to bounce and the height and duration will determine where we go next.

PRE-OPEN MARKET COMMENTS THURSDAY – I am going to keep this brief. We still have AMZN and AAPL earnings after the close today. Tomorrow we have the jobs report.

The economic news has been solid and the FOMC Statement did not move the needle. Earnings have not sparked much excitement and most tech stocks have not had sustained bounces after the recent sell-off. I view this as “heavy” price action and the market won’t get much help from the tech sector. That could change tonight, but I am skeptical.

The market has been soft the last couple of weeks and the height, character and duration of this bounce are going to determine if there is any gas left in the tank. The market will either challenge the all-time high with ease (bullish) or it will form a double top lower high (bearish).

Buyers and sellers are battling it out and this price action will tell us who has the upper hand. This might take a week to play out. Until then, take advantage of this incredible intraday price action and stick to day trading.

Support is at AVWAPQ and resistance is at $556.75

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