The market settled in a sea of red on Thursday following disappointing economic news and the continued fallout over negotiations on another coronavirus stimulus package. The losses held near-term and key support levels with the bulls needing a bounce back on Friday to avoid their 3rd-straight weekly loss.
The Dow had its 4-session winning streak snapped after testing a morning low of 27,647 while closing at 27,901 (-0.5%). Near-term and upper support at 27,750-27,500 was tripped but held. A close below the latter would suggest additional weakness towards 27,250-27,000.
The Russell 2000 tested an opening low of 1,526 before going out at 1,542 (-0.6%). Prior and upper support at 1,540-1,525 was breached but held. A move below the latter would indicate further weakness towards 1,515-1,500.
The S&P 500 settled at 3,357 (-0.8%) following the intraday backtest to 3,328. Prior and upper support at 3,350-3,325 was breached but held. A close below the latter and the 50-day moving average would signal further downside risk towards the 3,300-3,275 area.
The Nasdaq ended at 10,910 (-1.3%) after plunging to a midday low of 10,793 and closing back below the 50-day moving average. Prior and upper support at 10,800-10,700 was breached but held. A move below the latter would suggest further downside risk towards 10,600-10,500 and levels from late July.
The recent Friday’s closing have been bearish over the past few weeks and the back half of September is typically a weak month for the stock market. It will be import for the bulls to reverse this trend tomorrow and to possibly avoid a third-straight weekly loss.
To read our full Daily update and to review our current trades with profit potential that exceed 100%, click on the link below. You can also get a 67% discount by using the coupon code SAVE67
1 year – $499 (regular price $1,497)
SAVE67 – $499 ($41/ average monthly charge)
Please Use the Coupon Code OPTIONS67 to get an instant 67% discount!
This is our best deal ever and we promise we won’t disappoint!
Here is a look at our top 2020 winners:
+340%Western Union (WU) July 20 calls (June 2020)
+298% Boston Scientific (BSX) May 35 calls (April 2020)
+238% Virgin Galactic (SPCE) March 14 calls (January 2020)
+222% Limelight Networks (LLNW) January 5 calls (January 2020)
+220% Limelight Networks (LLNW) June 5 calls (April 2020)
+173% Bed Bath & Beyond (BBBY) April 12 puts (February 2020)
+119% Consumer Staples Select Spiders (XLP) September 65 calls (September 2020)
+114% AT&T (T) March 38 calls (March 2020)
+100% AT&T (T) March 38 calls (February 2020)
+113% Freeport McMoRan June 10 calls (June 2020)
+52% Dropbox (DBX) May 20 calls (April 2020)
+47% Pfizer PFE March 40 calls (January 2020)
+35% Spider Gold Shares GLD February 145 puts (January 2020)
Rick Rouse
CEO, Editor and Chief Options Strategist
MomentumOptions.com
Rick@MomentumOptionsTrading.com
