Market opens strong, goes soft into close, and after close!
After spiking the day at the open and making a new high, S&P gradually retreated into the close. Futures went further down after close.
This is a 20-min chart of S&P futures with 24-hr data
This is a 60-min chart of the index
The selling may be a test of the range breakout and the gap up at the open. It may be the beginning of something more serious. To me, as long as index stays above 1175-1180, it has a positive posture. A move below 1175 can indicate a potential short term trend change. A loss of 1168 (+/-7) pivot may, I repeat, MAY cement the high of today as an important swing pivot (I am tentatively looking for an intermediate (purple) wave 3).
I need to remember that index is operating on a series of unfilled gaps and a set of lagging momentum and breadth oscillators. I also need to remember that I do not hear much about a recovering economy and that all the talks is about Fed purchasing treasury notes and providing liquidity.
This is a daily
I posted this chart intraday and mentioned that the high of the day coincided with a hit on mid-line of the blue channel.
Did we have a shooting start candle today? I am not really a candlestick practitioner, I take no decision based on them – just mentioning it
We have negative momentum divergences. 13 EMA seems to have been the immediate support.
As long as index stays above 2007-2009 downtrend line, it’s either advancing or consolidating.
McClellan rose, but we continue to have lagging breadth oscillators
USD recovered from early weakness
So, short term, 1175-1180, and the range of the 60-min chart is the focus. A bit longer, 2007-2010 downtrend line.
OEW pivot support at 1176 and 1168. Pivot resistance at 1187 and 1219.
Long term trend is up. Mid-term trend is up. Short term trend is up.
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