The bulls were not able to print a higher high on Monday compared to last Friday. Until this happens the bears remain in control and caution should be exercised.
Level 3 Data Report: new Buy Signals for SPY, DIA, QQQ, IWM, IWP. New Sell Signal for TLT.
“We got the 11/09 bounce from L3D Buy Signals and now it must hold.
The SPX will open down today near yesterday’s lows. Despite the cautious note we are buyers of dips. Watch for the lunch hour reversal to 15:30 then reverse again to 16:00. Watch the key support and resistance levels as well as the intraday correlation between the SPY and TLT.”
Monday November 12th: “Low volatility.” The SPX traded in a narrow range Monday. The SPX gapped higher then traded to print the low of the day of 1377.34. Our non-bolded support level was 1377.63, just 0.19 difference. The bolded lower levels were not triggered. The SPX rallied only 7 points off the LOD to print the high of the day of 1384.73 again less than higher bolded levels based on higher volatility. Let’s not be fooled by this low volatility. Higher volatility has returned to the market and will continue until the 200 EMA proves to hold. The L3D Quant Report indicates 12 new long entries including the SPY, DIA, IWM and 2 short entries including TLT. This indicates price / selling pressure exhaustion and technically that we are ready for a good bounce back to the 0-line. See the November 12 pivot points and commentary below:
L3D Quant Report Buy Signal 11/08: SPY, DIA, QQQ, IWM and DVY. The 10/23 L3D Quant Report on SPY, IWM, MDY, IWP and DIA produced an average return of 1.2%. The QQQ exit narrowly missed the exit price by $0.30.
Key resistance level for S&P 500 (SPX) today November 13th – 1384.5, 1386.92
Key support level for S&P 500 (SPX) today November 13th – 1362.77, 1366.35
Today’s pivot points November 13th:
UP 1376 1380.57 1383.90 1384.5 1386.92 1392
DOWN 1376 1362.77 1370.32 1368.8 1366.35 1360
SPY – S&P 500 ETF: L3D Quant Report Buy Signal 11/08: SPY at $138.04 with an exit target at the 0-line of $141.79. This buy signal indicates Selling Pressure Exhaustion. The market action has sold off hard the past two days. To illustrate this point the daily range of the SPY for the past two days was 260% and 300% of the daily mean. We are back into a condition of selling exhaustion and price being oversold. The bulls must now push the price back over the 0-line at $142.18 which is now acting as resistance.
The following commentary has been here for a few weeks. It has played out exactly as anticipated. We are now at $138 and it is time to bounce back into the $142 level. “The most likely trading scenario is that we have seen the highs of the year of $148.11 and that we should rebound off our current levels back into the $142 range then print a lower high less than $145.00, trade sideways and down to $140, break through to print a lower low in the $138.00 level.”
TLT – Long Term Bonds: L3D Quant Report Sell Signal 11/08: TLT at $125.84 with an exit target at the 0-line of $123.09. The TLT is a mirror image of the SPY. The TLT closed 11/08 at $125.84. This sell signal indicates Buying Pressure Exhaustion. We are back into a condition of Buying Pressure Exhaustion and price being overbought. The TLT bears must now push the price back below the 0-line at $123.09 which is now acting as support.