Buy Machines Continue to Bounce following One Day Sell-offs

If the premarket is any sign of what looms for the market today, it will be yet another hard bounce following a one-day sell-off. 

And yesterday’s sell-off was nothing to turn a blind eye to. It came within 8 points of turning June negative for the month, and actually did do so on the Nasdaq. 

Nonetheless, as has been seen countless times over the past year, the bears are already showing signs of wanting to throw in the towel after yesterday’s minor sell-off. 

The key to watch is whether, once the market opens, the bears will try to push the price action down into the gap – if that happens, there will be ample reason to add a few shorts to the portfolio. 

That is essentially it. The bears, time and again, can’t manage a legitimate two days sell-off, except for ones that involve fractions of a point (literally). And today, you have  the most technical damage seen on SPX since the 5/17 sell-off, which of course bounced back the next day. .

Right now, SPX has broken the 20-day moving average, and is now trading below the rising channel that it had been inside of since the 5/31 lows were established. Now watch the 50-day moving average as it is now in play again.  

S&P 500 Technical Analysis

Current Stock Trading Portfolio Balance: 

• 3 Long Positions, 1 Short Position

Recent Stock Trade Notables:

• Intel (INTC) Short at $35.21, covered at $34.46 for a 2.1% profit. 
• Nvdia (NVDA): Long at $155.57, closed at $157.53 for a 1.3% profit. 
• IBB: Long at $298.24, closed at $303.74 for a 1.8% profit. 
• SPXU: Long at $15.68, closed at $15.25 for a 2.7% loss. 
• Whirlpool (WHR): Long at $190.46, closed at $195.19 for a 2.5% profit. 
• Ferrari (RACE): Long at $84.60, closed at $89.93 for a 6.3% profit. 
• Amazon (AMZN): Long at $964.70, closed at $1001.23 for a 3.8% profit. 
• American Airlines (AAL): Long at $49.18, closed at $50.62 for a 2.9% profit
• Alibaba Group (BABA): Long at $124.95, closed at $137.51 for a 10.1% profit. 
• Starbucks (SBUX): Long at $61.78, closed at $63.68 for a 3.1% profit.
• Western Digital (WDC): Long at $91.24, closed at $89.29 for a 2.1% loss. 
• Broadcom (AVGO): Long at $236.65, closed at $241.15 for a 2% profit.
• SPXU: Long at 16.60, closed at $16.98 for a 2.3% profit.
• JP Morgan Chase (JPM): Long at $87.84, closed at $85.98 for a 2.1% loss.
• Micron Technology (MU): Long at $29.00, closed at $28.04 for a 3.3% loss.
• Alibaba Group (BABA): Long at $116.25, closed at $124.09 for a 6.7% profit. 
• Southwest Airlines (LUV): Long at $58.35, closed at 57.23 for a 1.9% loss.  
• Broadcom (AVGO): Long at $223.63, closed at $228.65 for a 2.2% profit. 
• Workday (WDAY): Long at 86.00, closed at 90.32 for a 5% profit. 
• Univar (UNVR): Long at $30.96, closed at $32.20 for a 4% profit.
• Alibaba Group (BABA): Long at $111.91, closed at $115.48 for a 3.2% profit. 
• Redhat (RHT): Long at $85.21, closed at $87.21 foor a 2.4% profit. 
• Darling Ingredients (DAR): Long at $15.19, closed at $14.90 for a 1.9% loss. 
• Apple (AAPL): Long at $143.82, closed at $147.11 for a 2.3% profit.
• Teradyne (TER): Long at $31.16, closed at $33.03 for a 6.0% profit.
• UPRO: Long at $92.75, closed at $94.78 for a 2.2% profit. 

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