Market Will Spend Time At This Level – Holiday Hangover
Posted by Pete Stolcers on September 3
The market is trading in a wide range and it is visiting both extremes with regularity. There are many cross-currents and light volume during the summer doldrums added to the volatility. End-of-month fund buying pushed us to the upper end of the range last week and we are seeing a little profit-taking this morning.
China’s manufacturing PMI was little soft, but the services PMI was a little better-than-expected.
Major domestic economic releases will be posted this week. ISM manufacturing will be posted 30 minutes after the open.
Trade talks with China are breaking down.
The FOMC will meet on September 18th. The market is pricing in a rate cut.
A hard exit for England seems likely.
Trading volume will gradually recover this week
Swing traders should remain sidelined. The SPY has support at $282 and resistance at $294. As the week unfolds my commentary will expand.
Day traders should use the 100-day MA as a guide. If we are above it, favor the long side. If we are below it, favor the short side. We will have a holiday “hangover” today and we are likely to spend time right at the 100-day MA. Keep your size and your trade count down for a few more days.
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