S&P 500 TESTS PSYCHOLOGICALLY IMPORTANT 3600 LEVEL AND BOUNCES

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By Nigam Arora & Dr. Natasha Arora

To gain an edge, this is what you need to know now.

Test of 3600

Please click here for a chart of S&P 500 future (ES_F).

Note the following:

  • The chart shows that the market was running up going into the regular session open.
  • Momo gurus were hyping stocks over the weekend.  Their followers were putting market orders to buy.
  • Knowing that there were a lot of orders to buy at the open, market makers front ran and bought stocks in the pre-market.
  • After the regular session opened, the buy orders from the weekend were exhausted very quickly.
  • Once the buy orders were exhausted, the market fell sharply.
  • The chart shows that the market tested the psychologically important level of 3600.
  • From the chart, it appears that institutional investors stepped in and bought at 3600, causing a major snapback.  Many institutional investors have been saying that they would buy if the market fell to 3600.
  • The VUD indicator is the most sensitive measure of net supply demand in real-time. The orange represents net supply and the green represents net demand.
  • The chart shows that the VUD indicator is mixed, indicating indecision.
  • The bond market is closed for Columbus Day, but based on futures, yields are rising.
  • There is aggressive selling in German bunds.
  • There is aggressive selling in gilts in U.K.

Money Flows

The momo crowd money flows since the Morning Capsule are 🔒 (To see the locked content, please take a 30 day free trial).

Smart money flows since the Morning Capsule are 🔒.

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Short squeeze money flows are 🔒.

A Special Note To New Subscribers

Note the smart money behavior.  Smart money tends to sell into strength on strong up days.

New subscribers should consider adopting smart money’s way of investing and trading.

Sentiment

Sentiment is 🔒.

Sentiment is a contrary indicator at extremes.  In plain English, this means that when sentiment becomes extremely positive it is time to sell and when sentiment becomes extremely negative it is time to buy.

Close

Orders on close are indeterminable as of this writing.

There is merit to watching the pattern of market on close orders as they represent the day’s dominant net cumulative activity by many professionals and funds.

Gold

The momo crowd money flows in gold are 🔒 since the Morning Capsule.

Smart money flows are 🔒 in gold since the Morning Capsule.

Oil

The momo crowd money flows in oil are 🔒 since the Morning Capsule.

Smart money flows in oil are 🔒 since the Morning Capsule.

Buy Zones And Buy Now Ratings

🔒

Nibbling

🔒

This post was published yesterday in The Arora Report paid services.  Since then the Morning Capsule has had an update in the paid services.

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Picture of Nigam Arora

Nigam Arora

Nigam Arora is known for his accurate stock market calls. Nigam is a distinguished master of the macro. He is a popular columnist with over 100 million page views, an engineer, and nuclear physicist by background. Nigam has founded two Inc. 500 fastest growing companies and has been involved in over 50 entrepreneurial ventures. He is the developer of Theory ZYX of Successful Change Management and is the author of the book on Theory ZYX, as well as the developer of the ZYX Change Method for Investing.

Picture of Dr. Natasha Arora

Dr. Natasha Arora

Dr. Natasha Arora has significant expertise in investment analysis especially biotech, healthcare, and technology. Natasha is a graduate of Harvard Medical School followed by a postdoc at MIT. She has published several peer reviewed research papers in top science journals.

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