Market News 9-12-23

Everything looks good at the end of the day in the S&P 500. A third consecutive bullish day last Thursday closed near the high on a bullet shooting, which held its uptrend followed by a pretty good day on Friday from a gain perspective.

But it did close near the low of the day. Digging a little bit deeper after yesterday’s bullish gap, it is impressive that we fought all the way back to the high of the day, but a little bit of a deeper look into the price action you can see that the last two bullish days each have decreasing volume.

So not shocking that the market is set to open up a little bit lower today which is going to drag us right back down towards that 446.

Right now as far as conviction in the big picture of the market there’s not even a question we are kind of in the middle of that island right now.

On a scale of 1 to 10 probably closer to a six and a half on the bullish side and that’s very short-term in nature. Which for me means lower initial position size.

The market internals are in that “less bearish” mode but not bullish. This means moving trailing stop loss targets closer until we see directional volatility.

None of this is shocking of course with big inflation data coming out on Wednesday and Thursday. We’ve discussed we expected the market to be indecisive until those events.

Plenty of stock specific ideas, but you need to make sure your software is set up properly to give you the stocks with stacked order flow in real-time.