Thursday, August 3, 2017

Little Change

Market Outlook: Topping, but possible triangle
Market Indexes: SP500, ES, RUT, NDX down, DJIA up

The S&P500 Index closed at 2477 yesterday. The market gapped down at the open, and traded six points lower to 2471. Then, the market traded largely sideways for the afternoon, making one lower low at 2470, then started to rally to 2475 until the announcement by the Wall Street Journal of a Grand Jury being empaneled in the Russia probe. At that point, the index sold off to a perfect 78.6% Fibonacci retrace at 2469. It could make a possible B wave within a triangle.

By the end of the day, the NQ futures which had previously lost their embedded slow stochastic were back at the 18-day SMA (the "line in the sand"), and the ES futures had lost their embedded status by the settle, but need to be watched to see if they gain it back (the next day only).

Daily NQ Futures - Back to 18-day SMA

With today being a low volume "inside day" in the S&P500 and the NQ (but not in the RUT, with a lower low day), both the impulse count downward, shown yesterday, and the triangle remain viable forms. The market is probably waiting on the Payroll Employment Report, tomorrow morning, to better define the direction.

Have a good start to your evening.

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