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Post Market Analysis, Thursday October 29: Swing Low

|Includes:AAPL, AMZN, BAC, BBRY, BEE, BIDU, C, CIT, CVM, DIA, DZSI, EBAY, EDAP, FAS, FAZ, FBC, GE, GOOG, GS, INTC, IWM, JNJ, JPM, KO, MESA, MPG-OLD, PG, QQQ, SPXU, SPDR S&P 500 Trust ETF (SPY), TNA, TRIN, UPRO, XLF

Strong up move in the broader markets today. Most indexes finished up over 2%. The VIX dropped well over 11% today and the TICK and TRIN corroborated bullish movement all day. With this up move (higher high and higher low on the daily chart of SPY) I will mark a swing low here. From here we should see a small up leg. However, we now have a lot of overhead resistance to fight through. Expect major resistance on SPY at the $107.30 area. I will not trade heavily in either direction and whatever trades I do make will be day trades until we can get a more definitive trend.

This morning, a couple major economic reports (GDP and Jobless Claims) beat estimates. Keep in mind that much of the GDP increase can be attributed to government involvement and that detracts from the significance of that GDP number. Keep an eye on the economic reports due tomorrow morning. The big ones are Consumer Sentiment and Personal Income and Outlays. Also due tomorrow morning are the Employee Cost Index and the Chicago PMI.

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Thanks for being a part of Swing-High.com! Always trade with a stop loss and manage risk appropriately. Trade carefully over the next few days. There is a plethora of uncertainty in the markets right now, in either direction.

Happy Trading,
Jason