The stock market is clearly seeing a shift in order flow.
Technology, energy and basic materials took a break today but are clearly finding buyers. Market momentum is strong but long-term order flow is neutral at best.
A break above the $200 level tomorrow in the SPY will cause a short-covering rally and bring new money to the market.
Today’s price action was important. The stock market paused but did not trade lower. Earnings season begins, which normally means a nice catalyst to get the market out of the funk.
I don’t think that’s the case right now, it’s clear we are waiting on the Fed.
Stock Trading Recap 10-7-15 | Wednesday Video
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End of Day S&P 500 Map 10.7.15
S&P 500 heat map looks mixed but a deeper look shows large-cap stocks green with only a few exceptions. This tells us limited distribution took place today implying a move higher after previous momentum.
Basic materials took a break today as did some tech stocks but the price action appears to be nothing more than a pause.
SPY End of Day Chart 10.7.15
