Must suck to be a POMO-Dancer on days like today!
S&P is down to the bottom of 1175-1225 band I have been discussing.
1187 pivot was lost without much fight and becomes resistance pivot now.
Below this, I can see some technical support around 1160, and after that strong support around 1140.
This is a massive sell day with extremely bad breadth. This should get shorter term momentum and breadth gauges deeply oversold. An uptrend that responds to oversold and bounces is a healthy uptrend. An uptrend that ignores oversold and gets more uptrend is an uptrend in trouble.
So, behavior is the key.
Bad breadth and bad blood of today makes in rather unlikely that we see a reversal today unless an all-out buying attack on the index ETFs and future market happens.
So, I shall keep an eye on tape behavior as the afternoon unfolds -- Massive up volume bars on minute charts may be an indication of the POMO-POMO witch master chanting in the background.
Speculative day trading aside, if I wanted to bet on the bulls' side, I might look into some Dec or January calls with strike 120+
I mentioned the decline looked corrective. It still does look corrective, but with some creative counting I can make the cash count impulsive. I shall keep that in mind if I get some over-enthusiastic waver pushes his/her bullish or bearish count as if it is the one and only count the world can count on
I shall pay attention to my levels and pivots.
Right now, S&P needs a move above 1200 to indicate a potential change in trend.
Have a Nice Day!
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