Market Will Challenge SPY $208 Before Apple Earnings – Could Be Final Push

April 8, 2016
Author: Peter Stolcers, Founder of OneOption

Posted 9:30 AM ET - The news has been light this week and the moves have been all "noise". Stocks are up one day and down the next. Oil is moving higher and the market is rebounding this morning. We will open above resistance at SPY $205. The market needed to consolidate this week and that has been accomplished. Bullish speculators have been flushed out and earnings season will begin next week. The market should be able to challenge SPY $208 in the next two weeks. If the move is tenuous and we can't poke through, the topping process will begin. I haven't seen a huge rotation into tech and that needs to happen soon. Look for positive price action and a decent bid until Apple announces. China will post economic releases Monday morning and they should be good. Their official PMI was above 50 for the first time in months and the reaction should be market friendly. I will day trade from the long side today, but I will be patient during the first half hour of trading. Support will be tested and that dip will be shallow and brief. I will look for stocks with relative strength during that soft patch and I will be ready to buy when they come out of a 5 minute compression. I often talk about price compressions and a pattern we trade. Today I thought I would include a video link so that you can see the type of stock we are looking for. DAY TRADE THIS PATTERN - WATCH THE VIDEO This has been an excellent week of trading for us in the chat room. We will focus on biotech and pharmaceuticals today. Look for a solid bid and a bullish bias the next two weeks. If we can attack SPY $208 with gusto, we have a chance to move higher. If not, resistance will build and we will be set up for a decline in May. Given the "noisy" backdrop, I am not taking overnight positions and my option trading is minimal. We are making great money day trading and we will stick with what is working. . . image

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