Casino Jerks Downward to Fill Gaps: “what seems to matter most of all is if headlines go south on trade”

For day traders the media serve up the reason that the market is dropping today. Why, it’s the trade war, stupid!

Click the headline for the article (or click the bemused looking man with the declining stock chart behind him).

“What we’re seeing in the market today is another reminder that tariffs reign supreme,” says TD Ameritrade chief market strategist JJ Kinahan.

“You can have great results from two of the biggest retailers – Target and Lowes – but what seems to matter most of all is if headlines go south on trade.”

I would still say that for non casino patrons its a dangerously over bullish market with some negative divergences and massively bullish trends. Today is technically normal.

Overbought SPX uses the headlines to fill a gap.

spx

Overbought Dow uses the headlines to fill a gap.

djia

Overbought NDX uses the headlines to fill a gap.

ndx

Overbought SOX uses the headlines to nearly fill a gap.

sox

I would not be so cavalier (or stoopid) to take any decline in a dangerous market lightly. But this thing right here? Today’s dunk on the trade headlines? It would have a lot more work to do to make actionable technical signals for all but day traders watching the squiggles in-day.

Going against the bulls, the VIX is a candidate to bottom here.

vix

Going for the bulls, we have noted that there is a sub-level for VIX support going back to 2017.

vix

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