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Halftime Report, Thursday November 12: Reversal?

|Includes: DIA, IWM, QQQ, SPY, Financial Select Sector SPDR ETF (XLF)

 The SPY (S&P 500 tracking ETF) gapped down slightly this morning, filled the gap and ran higher into resistance at 110.40 and 110.5o, and reversed. SPY found some support at the 110 mark as expected (Support once broken becomes resistance), but broke down around 11:05. Right now, SPY is down about .5% at 109.6. Price is consolidating here intraday. We may see some continuation to the downside into the close. If SPY closes under 110, this could be the start of the next down leg as we saw a doji yesterday after a strong up leg, followed by a lower low and lower high on the next daily candle (today). Next support on spy is 109 followed by more significant support at 108 (on a breakout above 110, expect resistance at 110.5. After that, there is not much resistance until 120!).

The Financials (RIFIN, XLF) and Russell 2000 (NYSEARCA:IWM) are leading the markets lower today. The VIX is popping up about 5% right now which is bearish. The TICK and TRIN are rather neutral. It looks like today's sell off was sparked by a worse than expected EIA Petroleum Status Report. Lookout for the Treasury Budget at 2 as that could be a market mover as well.


This morning I picked up more short positions in the face of the up move. Needless to say, that was a little more difficult to do than I had hoped it would be. Psychology plays a big role in stock trading.

Thanks for being a part of! Always trade with a stop loss and manage your risk appropriately. Check back this evening for your Post Market Analysis.

Happy Trading,