Morning Market Brief

Good morning traders. Markets off to an interesting start this morning.

European traders sold the open only to have the markets get stuffed back into the 4310 area. We mentioned before that yesterday was a key area to hold given the retracement levels we are at.

We are also showing a positive RSI divergence on the SPY and TD Plurality is now turning positive.

DeMARK Trend Factor still targets the 450 region before getting bearish.

I'm interested in seeing how Ford will act from here. I've been slightly bullish on the auto stocks and there is a major trend line / 200 day moving average that Ford is now retesting that has been holding. The stochastic indicator is way over sold and we have a short-term wave 5 down completed coupled with the fact that this could be a massive wave 3 / wave 5 up that is still active.

TSLA is retesting major retracements here and could actually be one of the big signals in this market if we start to fail near these levels, coupled with the fact we are at the 200 30minute moving average. I could see the case for getting massively long downside gamma in the medium term if we fail here.

The banking space looks really bad in the medium term. Seems like the risk-off has led to markets pricing in a more dovish Fed which in turn caused the banking stocks to discount lower interest rates. Citigroup is one of my favorite banking stocks and is retesting the 100 week moving average, again.

However, you can see that the TDST level near 60 has qualified a downside break, which means now we have to wait for the 13 buy countdown to complete. I would stay patient on the banks as the charts and breaks are signaling something more dovish for rates under the surface.

Best of luck.