Saturday, October 1st, 2016

Market staying toppy for November


The sticky behavior of the market is surprising many bears and bulls at this time. During the earnings season this is expected however. The indexes are hovering around all time highs and slowly working their ways back to the moving averages. SPX has hit all time highs of 1775 and has not pulled back to complete its cycle of making a lower highs as it has been the case for the last 1 year in the market. RUT has hit its 50 day moving average and bouncing off nicely last week. NDX is looking more bearing than ever but hardly selling off.

Whatever the expectations have been they are frustrating the longs and shorts at the same time. Major stocks are however doing what they do pulling back to moving averages and holding steady. NFLX in particular is holding up well around its support on the averages. LNKD has dived below all moving averages and acting bearish moving towards its 200 day line.

Taking long positions in indexes is risky at best and not easy. Any sharp pullback can place the bullish trade in the hole.

This week would be interesting to see as we move towards options expiration.

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