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Good Morning! After very bearish moves yesterday the markets are poised to open green this morning. This is where our 60 min ranges will go into effect to help us see if we’ve hit a short-term bottom. For the uninitiated, an opening range is just that, the range a stock or index has over a period of time. A 60 min opening range is the range in the first hour. A break to one side or the other would be seen as a potential indicator of short term direction. These breaks can be various levels of importance depending on market conditions. On a day like today, they can be very important to see if we’re continuing down or reloading for a move back to highs.
The SPY and it’s test of the 50 SMA will be the story today. We bounced off that level yesterday, but on a second retest this week we may break below. A single close below doesn’t really concern us, but a second would set off some warning bells. The SPY has not had consecutive closes below the 50 SMA since November 2nd and 3rd of last year.