The Jersey Turnpike
Wasn't the hump on the right?
My tires were slashed and I almost crashed
But the Lord had mercy
My machine she's a dud out stuck in the mud
Somewhere in the swamps of Jersey
The afternoon quest continues with zest as the bulls turn it up and the bears take a rest. While this morning's story could have been gory, Snapper emerged and stole young Boo's glory. After the morning sprint to initial resistance (S&P 1004 and NDX 1330), the Minx spent the better part of the day doing the Sammy salsa. Now, as we edge into the home stretch, the much discussed hump is creating a bump.
We've (thus far) held the 50-day moving average in the NDX and we're trying to dance back through the the same level in the S&P (and BKX). On the margin, those are constructive inputs and must be factored into the mix. Please remember, however, that the trendline breaks (from last week) haven't magically disappeared and we remain firmly entrenched in a brand new series of lower highs and lower lows (bearish).
Outside of Beeks sneak peek, tomorrow will be all about quarter-end and that'll lend an element of uncertainty to an already anxious environment. In many ways, today's fray was easier to play as the first test of NDX support (from an oversold condition) was more likely to hold than the second (or third) test. We're still a long way from Kansas, Dorothy, and the "staying power" (dip buyers mentality) has yet to be truly tested. Stay on your toes, Toto.
Watch Europe overnight as Snapper never swam across the pond. If you awake to red bourses, it'll be the first clue that something may be afoot at the Circle K. I will also note that the dollar hasn't seen a meaningful bounce today and if it slips through the summer lows, the monopoly peg could pick up in pace. Do not pass go (or collect $200) without monitoring this, please, as it certainly matters at some level.
That's about it as we eyeball the flicks and juggle the ticks. I want to leave you with one of my favorite quotes from the Muhammad Ali. "Today I'm 59 and tomorrow I'll be sixty. Yesterday I was 22. Don't wake up at sixty and wish you had today to do all over again." Sage words, champ--now we just gotta practice what we preach!
Have a peaceful night.
Todd Harrison is the founder and Chief Executive Officer of Minyanville. Prior to his current role, Mr. Harrison was President and head trader at a $400 million dollar New York-based hedge fund. Todd welcomes your comments and/or feedback at firstname.lastname@example.org.
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