After a shaky start, index had a good morning before stalling and finishing flat for the day
Notice that index made it close to the upper blue line. The blue lines are probably about to get a good test of validity for the first time since I set them after index started rising from the multiple retests of the 1040 area. They actually are meant to be parts of a channel like this
Let’s see how bulls do around here – near the mid-line of the potential channel
After such a big run, and with short term breadth overbought, index is bound to have a slowdown at some point. Bulls can frustrate the hell out of bears if they do not let the index drop much below the purple actionary line and just go sideways if they need to cool off a little.
Other than that, a pullback to the cluster of MAs around 1090-1100 is quite OK.
As I mentioned during the day, I have adjusted my levels to 1114, 1100, 1090-1085. They may change depending on how index does tomorrow
Daily volume shrank a bit. Breadth was mixed
McClellan pulled back a bit.
This is one of those situations that one cannot give any advice to those who want to get in or those who are caught short from lower levels. Index has had a good run, it may suddenly pullback 20-30 points, or not.
This is a 60-min chart
Divergences look ominous. The last bar of the day was a straight down into close. A pullback may not be far away.
As I said last night, a lot may be hinged on the USD. The dollar action today was terrible
Sometimes, a break out of the range like today may be a fake like this
Do not take the count literally. It’s just an example to show a possible fake break from a range. So, a lot may depend on how the Dollar does from here.
Falling dollar may be good for asset prices. What did Bernanke say about prices?
I am not predicting anything -- just musing and asking questions.
OEW pivot support at 1107 and 1090. Pivot resistance at 1136 and 1146.
Long term trend is up. Mid-term trend is up. Short term trend is up.
This is an OpEx week!
Have a Nice Evening!
S&P 500 – May 15, 2012 - Bottom Line: Long term trend is up. Mid-term trend is down. Short-term trend is down Weekly S&P stage is Late Advance (2-C) Daily S&P stage is Strong Decli...
1 year ago