Monday March 7, 2016
Key Developments :
- Inside Day Chop Consolidation
There really isn’t much to talk about here today so we’ll keep it short. From an index perspective, there is very little under construction technically, and we are just consolidating for the next move. It is a tough place to be long, and very little price action to allow us to be short the indexes. Bigger picture, we still have the double bottom trade in motion targeting 2084 and the 161.8 retrace at 2031, which is the Fib we failed at in October.
On the 30 min view we have a nice tight channel with consolidation near the top. There just isn’t much to work with. The dream trade here is a dip just below the trend-line, maybe on the close, and then a gap and go bear trap. Other than that we just have to wait and see.
The Bottom Line:
There really is no reason to be bearish, however, market is overbought at some resistance, so it is hard to press long. One of those sit on your hands moments or trade individual names. The XBI gave a nice entry point this morning.