Market Analysis and Trades for 7/2
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The weekly post for SPY 0.00%↑ and QQQ 0.00%↑ should be reviewed prior to this. Link to Market Analysis for The Week Ahead
Today was an interesting day as SPY 0.00%↑ posted an inside day while QQQ 0.00%↑ was a gap down and go which took out both yesterday and Friday’s low. Both IWM 0.00%↑ and DIA 0.00%↑ were quite strong. This kind of conflict between the two majors can make for some difficult trading. Selectivity is key.
Coming into today we were short failures to sustain above 6256.25 and looking to join dip buyers below 6230. These edges worked both overnight and intraday.
The overnight session traded higher, failed to sustain above 6256.25, and resolved to 6230. The dip was bought just below 6230 both overnight and again during the cash session.
After the cash hours 6227.5 low, buyers rallied to a new high of day in the afternoon but were offsides in doing so. This gave us an opportunity for a quick short back to the center in the Discord, filling 6260 (6261.5 high of day) with major targets of 6245 and 6242 (afternoon low 6240) for an R of 9
It will be interesting to see if the QQQ 0.00%↑ weakness continues and if it translates into $SPY. I’ll presume NQ to be a 3-day balance for now after sweeping Friday’s low. Therefore, it is presumed range low until proven otherwise:
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