Weak Rally Attempt
September 24, 2020
STOCKS –
Macro – SPY, QQQ
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It wasn't the most incredible day for bulls, but it could have worse, as the indexes went up. The S&P 500 increased by 30 bps to finish the day at 3,250. Meanwhile, the Qs finished the day higher by approximately 50 bps.
NASDAQ 100 (QQQ)
The Qs are firmly entrenched in the trading channel lower, retracing about 2/3 of yesterday's steep decline. From a bull perspective, this was a pretty weak rally, finishing well off the highs of the day. I still think we are heading to the bottom of the trading channel, which is somewhere around $253, as the next stop.
At this point, the RSI is not even suggesting a reversal is in play, so I think we continue to see lower prices.
S&P 500 (SPY)
The S&P 500 did manage to form a lower low today, and a lower higher. The index bounced right off the lower trendline of the trading channel. A push higher towards 3,300 tomorrow seems possible, but that should be all that we get.
Anyway, that's all for today. Need to take a break
Mike
The NASDAQ 100 Analogy
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