Friday Feeling

Good Morning Traders
Well we find ourselves at the end of another crazy week highlighted by extreme volatility and a lack of direction. Yesterday we saw a nice bounce from the lows and the US markets looked like they did in the opening months of the year as they moved in one way. The move yesterday was significantly important as we saw the initial loss of the 1600 level on the S&P500 and we briefly traded below 14900 on the Dow. The market changed from Risk Off to Risk On in a matter of minutes and there was no fundamental logic behind this aggressive buying.
It will be important to see how we wrap off the week, another day in the green might bring some optimism into the market and encourage a few retail investors back into the equity markets. Another significant thing that we will be keeping our eye on its $AAPL due to its significant influence on the S&P500, the stock traded briefly below the $430 level and a close below this could have caused a drag on the US equity markets. However we have noticed an inverse correlation between the pair which is unusual as a trader you would imagine that if the S&P500 was moving higher so to would $AAPL but it is not the case, they move in opposite directions. We put this down to the fact that money was in in $AAPL when the S&P500 was declining and investors, when $AAPL hit the $700 level things turned around an the $AAPL stock began to decline and the US Equity market began to rally and we saw money come out of $AAPL and move into the US equity markets. However I believe that this relationship will persist, if we do see a significant market correction we could see money move back into $AAPL.

And finally we do not expect to much volatility today the news flow is light and volume has been relatively low in the morning session so we will find our levels and wait for the setup's before entering the market.

Happy Trading
@lowkeycapital