Scott Burrill - Market Notes

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Scott's notes
Scott's Market Notes

Levels for Monday

Oct 15, 2018

With 94% of the SP1500 below its middle Bollinger Band and 60% or 910 of those members outside of, or hovering near, the Lower Band, the obvious question is what now.

Historically, this was a garden-variety correction, yet the speed and highly correlated nature of it, felt much worse.

Broad Trends are generally down on most models at the Weekly and Daily durations.

Looking forward, the potential catalysts are Economic Releases, Fedspeak, Trump Tweets, Brexit, and guidance from reporting companies as Earnings Season begins.


What now?

The Trader (Active PM) is back in force.

With Volatility elevated and the SP500 smashing through last weeks option implied move, this week option markets are expecting a near + / - 71 point move or 23% implied volatility.

On top of that, we see the Weekly Magnet line at 2793.50, which is well below the magnet of 2904 last week.

Opportunities abound depending on one's time frame and duration.

Particular Tells today will be on the Semiconductors, Russell 2000, Bonds, Nasdaq 100, Oil, Financials, SP500 and Gold.

Looking at shorter durations and propagating outwards, "fractally," where the work is agnostic, resiliency is emerging. Broadly, in the SP500, this is noted in the SP500 >2734.

Key Levels are:

Bias is UP.

All the best,

Scott

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