Daily Commentary: September 08, 2023

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These Are the Key Market Levels.

Posted by Peter Stolcers on September 08
www.oneoption.com

We need to get through them early on heavy volume and that is unlikely. This is setting up to be a dull day.

PRE-OPEN MARKET COMMENTS FRIDAY – You can interpret the headlines anyway you want. Good news is bad news or bad news is good news. The fact remains that buyers and sellers are engaged and we are seeing two-side price action. Regardless of which way we go, it is going to be a VERY bumpy ride. That makes for very tough trading conditions.

The market closed below a key support level at SPY $445 this week, but there has not been any follow through. Yesterday the market gapped down on the open and it bounced early in the day, recovering almost all of the losses. This type of price action does not reflect strong selling. Yes, the bias is slightly bearish, but buyers are never far away.

Overseas markets were down slightly so there is not much influence there. The S&P 500 is flat before the open and this looks like a dull day in the making. Stay flexible and watch the volume closely. Without volume, the market will not make a directional move today and we will be stuck in a choppy range. That would prompt you to keep your size and trade count down. We need a breakout above the close from Wednesday or below the low from Thursday early in the day and it needs to come on volume for us to have a chance at any movement today. These are tough conditions, but we are through the summer doldrums and normal conditions will return soon.

If you find a stock that has great RS/RW and a technical breakout on heavy volume, you can zero in on it and day trade it without too much concern that the market is going to get in the way. Just know that you will not have a market tailwind and that the stock will have to do all of the work.

Support is at SPY $442.75 and resistance is at $446.20

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