Is this consolidation for SPX 1,000, or a set up for some short-term profit taking? That will be the question on traders’ minds all day long and into next week. So far we have seen a ten-point range limited by the daily floor trader pivot. Although we got off to somewhat negative start, yesterday’s after-session lows held on stabilization in the Nasdaq, falling VIX and recovering Cumulative Tick and Advance-Decline lines. Those elements have since flattened and remain net negative on the day, setting up a potential push back towards the pivot if they can’t firm up once more.
Note range lift from last week.