Midday Comment (very quick)


Our call for a sharp short-term bounce has worked-out very well so far. The S&P now stands a full 6% above its intraday lows from Friday! However, when it got up to its 200 DMA today, the S&P stalled-out. Therefore, if the market is going to run-up to the 3165-3185 range we are targeting, it’s going to have to break above that line first.

The reason we’re highlighting this right now is that we thought it would take a few days to bounce even this much. Now that has rallied so strongly in just one day (plus the last half hour of trading on Friday), it might lead investors to be more willing to “sell on strength” a bit more quickly than we had originally been thinking. This is especially true given how the uncertainty surrounding the coronavirus is still incredibly high.

Therefore, we’ll be watching to see if the S&P can break above that 200 DMA over the next 24-48 hours. If it can’t, the odds that another down-draft will hit before the end of the week will rise very quickly.



Matthew J. Maley

Managing Director

Chief Market Strategist

Miller Tabak + Co., LLC

Founder, The Maley Report

TheMaleyReport.com

275 Grove St. Suite 2-400

Newton, MA 02466

617-663-5381

mmaley@millertabak.com


Although the information contained in this report (not including disclosures contained herein) has been obtained from sources we believe to be reliable, the accuracy and completeness of such information and the opinions expressed herein cannot be guaranteed. This report is for informational purposes only and under no circumstances is it to be construed as an offer to sell, or a solicitation to buy, any security. Any recommendation contained in this report may not be appropriate for all investors. Trading options is not suitable for all investors and may involve risk of loss. Additional information is available upon request or by contacting us at Miller Tabak + Co., LLC, 200 Park Ave. Suite 1700, New York, NY 10166.

Posted to The Maley Report on Mar 02, 2020 — 2:03 PM
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