≈ Maybe. ≈

Traders,

My beta weighting message will have to wait until Monday. Yesterday’s market rally demands some attention. In light of the market strength, particularly after such a compelling bullish reversal candle as Wednesday’s, some of you may be wondering if that was the bottom.

The unsatisfying yet correct answer is we don’t know yet. There simply isn’t enough evidence. Trend reversals are confirmed when you break horizontal resistance zones and major moving averages. Yesterday did neither. In fact, with the late-day rollover, SPY didn’t even close above the 20-day moving average.

What’s more, the volume was negligible. The 72 million shares traded on SPY marked the lowest participation in eight sessions. As I said in my Wednesday message, rallies are suspect.

So what would make me a believer that the bottom was in?

For starters, SPY needs to close above the 50-day moving average (currently at $442.86). Then, we need to push above the old resistance pivot at $445. At that point, the daily downtrend is over.

Give me more, SPY. Give me more.

#TeamTackle

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Chart of the Day

SPY Resistance

With Thursday’s late-day selloff, SPY ended with a long upper shadow. It wasn’t the strong close bulls were gunning for, but I suppose it could have been worse. Here’s to hoping we see some upside follow-through and more conviction.

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Video of the day

Focus on Fundamentals: Return on Net Tangible Assets (RONTA) Explained

In this Fundamental Focus clip from Thursday’s Halftime Report Coach Greg explains what Return on Net Tangible Assets is and how traders and investors can use this important fundamental concept.

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Today’s line up

Traders Lounge 11 AM EST

Join the coaches in this live lounge, ask questions, discuss ideas or just sit back and listen to veteran traders discuss market conditions.

Halftime Report 12:30 PM EST

The Halftime Report starts at 12:30 EST and covers what news is driving the market, chart analysis from the movers and shakers of the day and fun in a way that only Matt and Tim can deliver.

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Financial freedom is a journey

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