Good Morning SPY was up .04% so we went absolutely nowhere and were still getting rejected from critical resistance around SPY $420. The debt ceiling matters but we need to see price action showing that the market is concerned and we really can’t become bearish while the chart is still bullish, and right now the chart is still bullish while SPY is above $417. Remember SPY above $417 is the higher high break out from the February 2nd high, so being above that level we are still in short squeeze territory and we still do have gaps to fill above at $421 and $425. While we can speculate on what might happen, we can only trade what the market is giving us.If your short the market you need to cover above SPY $420 or if we breakdown to a lower low which would require the break down of support at $415. So even if we break $417 we do have support right below at If you’re bearish then manage your risk at $420 which is critical resistance. Keep in minded we have gaps at $421 and $425 and gaps at $407, $401 and $396. All of these gaps will get filled in the future but we have no idea exactly when. The trend still favors the bulls while SPY is above $414 and $415 so we are not getting bearish until we break down below those support levels.
The Nasdaq 100 Triple Q’s – We were up .34% yesterday and we closed between the critical resistance zone between $337 and $339. I really don’t see a lot more upside for the QQQ unless we break above strong resistance right here. We are pretty overextended and we will most likely trade sideways to lower I’m not bullish on the QQQ for that reason. That does not mean I am right because the market does not really care what I think. Let the chart do all the talking we should retest the breakout at $333 and $327 to the downside we have gaps at $315 and $308 and although we don not know when these gaps will get filled, they will get filled. All Gaps eventually get filled. We have a lot more downside until we get back to support.
The 10 year yield is having a higher low and higher high break out which is telling us that the rates are starting to climb, as you know if rate go higher that will be a headwind for Tech Stocks.