Markets fared better than would have thought Wednesday as markets looked fragile before the opening. The second day of the shutdown and a weak private job number did not excite the bears to much today, perhaps they are just awakening from a long hibernation. Time will tell. The Nasdaq finished right at the top of its daily range on back to back days, barely missing a bullish inside day. The S&P 500 for the second consecutive day bounced off 50 day support which is something I did not believe would hold. My thoughts were a break below as in June and August was in order, but for the time being looks like the scenario that played out in February and April will suffice. I will keep up my guard however since to me it still seems like their is some complacency. Experienced traders normally worry more about the potential loss, rather than the gains that can be achieved, keeping risk in check and preserving capital. The put call ratio did trade near 1 last week indicating some fear that has been accurate in the past for calling short term bottoms. Would love to see the 1700 level challenged again on the upside on the S&P 500, then that 1710 level where that false breakout on 9/18 occurred. Be rest assured that will be tough to overcome if it even gets their.
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