Market Precision: Your Daily Re-Cap

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by Chris

Well, I am just awed at the precision on display here.

Imagine you wanted to paint a double bottom, or at least convince other market participants that a double bottom had occurred.  What would you do?

Well, I would defend the prior low with everything I had, drive the buying back over that line over and over again, and then close the ““markets”” just a whisker above the former low.

That way, the only possible interpretation is that the former low held firm and even made a “higher low.”  That’s what you’d want to see if you were looking for a tradeable bottom.

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Here are the former lows from 10/29/18 and then today’s close for the major US indexes:

Dow: (Low) 24,442.91

(today’s close) 24,465.64

 

S&P 500:  (Low) 2,641.25

(today’s close) 2,641.89

 

Russel 2000:  (Low) 1,468.70

(today’s close) 1,469.18

 

Nasdaq:  (Low) 7,050.29

(today’s close) 6,908.82

 

Recap:

– Dow is +22.73 points from the 10/29 low or +0.09%

– S&P 500 is +0.64 points from the 10/29 low or +0.02%

– Russel is +0.48 points from the 10/29 low or +0.03%

– Nasdaq is -141.47 points from the 10/29 low or -2.01%

Incredible! 

That’s some mighty fine precision there with only the Nasdaq playing odd-man-out.  Think of the odds of three out of four major averages magically closing less than 0.1% above their respective former lows.  But above is above, amiright?

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If I were trading this mess (and to be clear I am not, nor is this advice) I would seriously consider buying the futures here for an overnight pop with a tight stop, just in case.  Wouldn’t you agree, this looks like the bottom might be in?

But this certainly has a manufactured feel to it, the question is, can it hold?

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