September was certainly a month to remember as the market continued its violent swings but stayed within its current 2-month trading range. Wall Street traded in reaction to an improved outlook on Europe’s debt and the fact that there will be a resolution to Greece’s bailout by mid-October, Blondie style – one way or another.
The bulls were coming into the week trying to hold the bottom range of support and did well by rallying 2% on Monday. The Dow reclaimed the 11K level while Tech closed back above 2,500.
On Tuesday, the bulls extended their winning streak to 3-straight and took out two layers of resistance before a late day fade which was worrisome as the indexes finished below their first level of resistance.
We were right. On Wednesday, the market fell nearly 2%, on average, as the Dow barely held 11,000 while the S&P 500 was clinging to 1,150. The Nasdaq had finished back below 2,500.
Thursday’s action was choppy as both sides exchanged blows. The bulls got the early jump and held their gains for much of the day although Tech was weak. By midday, the bears had battled back and we doing some damage as the market tested new lows for the week. However, a final hour rally gave the bulls the win as they headed into Friday with slight gains for the week.
Futures were pointing towards a weak open on Friday and after a test to Thursday’s lows, the bulls tried to rally past the first layer of resistance before lunchtime. They were nearly there but the bulls should have stayed at the bar and ordered a cocktail because the rest of the session was nasty.
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Futures are pointing towards a lower open this morning. Dow futures are down 55 points to 10,786; S&P futures are lower by 6 points to 1,120; Nasdaq futures are off by 17 points to 2,118.