{"id":38731,"date":"2017-03-28T02:18:07","date_gmt":"2017-03-28T09:18:07","guid":{"rendered":"http:\/\/drduru.com\/onetwentytwo\/?p=38731"},"modified":"2017-03-28T08:41:03","modified_gmt":"2017-03-28T15:41:03","slug":"t2108-update-170327","status":"publish","type":"post","link":"https:\/\/drduru.com\/onetwentytwo\/2017\/03\/28\/t2108-update-170327\/","title":{"rendered":"Above the 40 (March 27, 2017) – Sellers Fold, Buyers Chase SNAP Underwriters"},"content":{"rendered":"

AT40<\/strong> = 36.8% of stocks are trading above their respective 40-day moving averages (DMAs)
\nAT200<\/strong> = 57.8% of stocks are trading above their respective 200DMAs
\nVIX<\/strong> = 13.0 (volatility index)
\nShort-term Trading Call<\/strong>: neutral<\/p>\n

Commentary<\/strong>
\nImagine that, the S&P 500 (SPY) found buyers to defend support at its 50-day moving average (DMA).<\/p>\n


\n
\"The<\/a>
The S&P 500 (SPY) gapped down at the open below its 50DMA support. For a brief moment, sellers pressed the advantage, but it was oh so ephemeral. The index rallied back to near flatline with Friday’s close.<\/figcaption><\/figure>
\n
\n
\"Sellers<\/a>
Sellers maintained momentum for all of the first 10 minutes of trading.<\/figcaption><\/figure>
\n<\/center><\/p>\n

The NASDAQ (QQQ) did the S&P 500 one better by rallying exactly off its open to complete a successful test of 50DMA support. Sellers never even got 10 minutes of fame.<\/p>\n


\n
\"The<\/a>
The NASDAQ (QQQ) experienced such a strong bounce off its test of 50DMA support that the tech-laden index closed with a gain and its third day out of the last four.<\/figcaption><\/figure>
\n<\/center><\/p>\n

AT40 (T2108), the percentage of stocks trading above their respective 40DMAs, traded as low as 31.2%. Given the strong bounces on the day, this low could end up being “close enough” to oversold…not to mention that low happens to coincide with the low form the day after the U.S. Presidential election. As a result, I quickly flipped my trading call back to neutral from bearish. Consistent with this change of heart, I locked in (small) profits on my shares of ProShares UltraShort S&P500 (SDS).<\/p>\n

<\/p>\n
\n

Sold $SDS<\/a> shares from bearish signal last week – https:\/\/t.co\/12A0O8e54V<\/a> #AT40<\/a> #T2108<\/a> $SPY<\/a> $STUDY<\/a> #122trade<\/a><\/p>\n

— Dr. Duru (@DrDuru) March 27, 2017<\/a><\/p><\/blockquote>\n