For weeks, we see the same in this market, a drop and pop. Simply explained buy the dip! How long will the amateur buyer do this? Yesterday we got a real nice reversal day in the market! Today we gapped lower, and then the open buyers came into this market. Around 10.30H when the volume is extremely light, it's easy for them to push the market higher on low volume.
What will the outlook be for tomorrow? It will all depend on how Japan will trade tonight. Yesterday Japan closed down -7%, so my expectation is that the index will close higher tonight based on how the US was trading today. For tomorrow, I will expect a low volume pre-holiday day, so a light volume float higher.
Let's go over the $Spy day trading levels for tomorrow. First resistance will be at the 200 moving average $166.60 and then $167.20. Support for tomorrow will be $164,00 and $163.54
Kristof De Block