Mini SP500 Intraday Review

The markets are struggling trying to decide which way they want to go. At this intraday scale we are barley off historical record highs, so it is understandable why the markets are not picking a clear direction just yet. We have a huge open gap just above present prices, which should get closed off, before the Sp500 can resume any bigger bearish trend. 2481 would be the magic number to beat to create a new record high. 

The violent moves the markets can make, would make a new dash to record highs child’s play. To help make the bearish case the SP500 would have to retrace the entire August rally, and then keep going. Every support range we can come up with, will get broken to the downside, because everybody is only expecting a small correction. Some say a 5% correction and then back to the stock party.  A 5% bear market will be no worse than a bee trying to sting a bear through its’ thick layer of fur.  

For a new record high bull market to still be in our future, the markets have to establish a very bearish base first. Besides the markets have one major ingredient missing, and that is insider buying. The insiders who are the contrarians have already left the “Building”,  (May, 2017) and until they come back in large groups, this market is in no man’s land, or some kind of la la land. 

The VIX also has a huge gap that needs to get closed off, so this also helps to keep the bullish scenario alive a little longer. The DOW and the Nasdaq also have a gap that needs to get closed. Either way, if these gaps are left open, then we know that in the future those open gaps will become a price target that the markets will strive for.