ChartsEdge (S&P 500) map for 4/3

Market Map for April 3

Posted: Apr03
Author: Mike Korell
Filed under: One-Day Market Map


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Well folks, the weekly cycle forecast from ChartsEdge's generally pointed the way higher, which had led to my remark that the "buy on Monday" crowd would do well again this week - that certainly happened. Looking at today's map from them, it might be a good time for the reminder that we should consider these maps more for the cycle timing intraday, and not so much for relative highs/lows during the day. Also that these maps are generated from signals that correlate to traders' mood during the day, and therefore don't account for any intraday bias that may take over for other reasons. Normally one gets a good sense about an hour or so into the trading day whether the map is going to track well for the action during the rest of the day.

Yesterday, early in the trading day I'd posted a remark at my UBTNB3 blogspot that the VXO and VXN were not as low as the VIX. That seemed noteworthy to me and such disparities are worth keeping an eye on.

This morning, an options expert discussed a huge amount of call activity on the banks, including that the most actively traded contract yesterday was the $5 call for Citigroup. What I don't know was who was on which side of that trade. Also, notes to watch Wells Fargo and Morgan Stanley, which underperformed yesterday in the one and had high put activity in the other; meaning, that those two may underperform in that sector. All this from an options expert on CNBC - take it for what it may (or not) be worth - I cannot speak to it personally, so I'm always skeptical on analysis that I don't know personally.

I have found it interesting that the banking index ($BKX) didn't run as high the past couple of days, as the broader markets. I can turn more optimistic on that sector if it moves past the resistance level that I showed in charts some days ago here (under the "Banking" label). So ... we'll see.

Remember - it's Friday! so don't forget to put yourself into position to enjoy your Friday evening and weekend. Be careful out there - and, happy market navigating!