10/6/23 The Setup is Pretty


On Thursday, markets opened near flat and closed near flat.

Most of the session was spent in the red, but markets closed well off their lows.

These are what long “bottom-shadow” candles like close up…

Charts from Finviz

Investors oozed caution ahead of today’s jobs report. 

The indexes settled near their session highs but were still mostly red.

  • Dow Jones -0.0%
  • Nasdaq -0.1% 
  • S&P 500 -0.1%
  • Russell 2000 +0.1%

Sector Round Up

4 of the 11 sectors managed a green close on Thursday.. 

At the top…

  • Real Estate (XLRE) +0.7%
  • Healthcare (XLV) +0.6%
  • Financials (XLF) +0.5%

At the bottom…

  • Energy (XLE) -0.6%
  • Materials (XLB) -1.2%
  • Consumer Staples (XLP) -2.0%


With markets, anything *CAN* happen. 

But history still tends to be a pretty good guide for what actually will happen…

The S&P 500, one of the best measures of the broader market, looks more and more like it’s ready to turn.

SPY Daily Candles – Chart by thinkorswim

It’s consolidating at a key support level. And it’s coming off oversold conditions.

A setup this pretty is rare. 

We’re adding to our seasonal swing positions as all our signals suggest the bottom is in.

Your latest readout…

  • The VIX is holding below 20
  • RSI levels remain split…
    • The Dow and Russell 2000 are oversold
    • The Nasdaq and S&P 500 are neutral
  • The put-to-call ratio is back to regular oversold


Today, all eyes will focus on the jobs report, which is due out at 8:30 this morning.

Watch the market’s reaction. And never trust the first move.


*Low Float
^Open Position

*IMMX support at $3.75
*GRPN support at $14
^*GLBS on watch
LFMD support at $6
TNGX support at $11.50
MRTX support at $55

Secondary watchlist—float 100+ million

TAL support at $8.50

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