Market bounces after test of support!
Nice price moves today across the board
This is a weekly chart of S&P
Multiple tests of support and index is staying in range and above its MAs. Bulls need to take this above 1200.
This is a daily
I said that I wanted the bulls to get out of the down-sloping channel and get above the MAs. They did that today – in one session!
Now, I would like them to hold the 1187 pivot if they must pullback.
Daily volume came about average. Daily breadth was awesome!
Breadth reading like this is typically associated with shorts across the market running for cover, especially since the move started overnight in the future market.
Also, breadth, like what we had today, often begets more advances within a short period of time – we’ll see if bulls can capitalize on today’s lead
It’s all good and dandy to squeeze a bunch of shorts into a gap up and rally, but, bulls need to do more. They have the platform to launch an assault. It’s up to them to use it.
McClellan rose, but is still mired in the negative territory.
McClellan needs expansion.
There was some nice improvement in some of the gauges of the chart below
It would be nice if A/D line started rising again
This is 60-min chart
There can easily be less bullish, or even bearish alternated to the count. It is important for the price to unfold impulsively to keep the count I present on track.
We have a rather big gap that opened today. One way to put pressure on trapped shorts is to not let the index dip deeply into the gap.
The short term range has resolved to the upside.
A lapse back in the range is not the end of the world but is not all that great either. As long as index holds the 1187 pivot, it can gather energy and move higher.
I have updated the theoretical upside target of the 1175-1200 range. Theoretical means theoretical, however, we have had very good hit rates with range targets in the past, but it’s all just theory, or a probabilistic modeling of future based on statistical past – take it for what it is and not more
Dollar has established a small uptrend and is now overbought
Let’s see what it does with being overbought. Good uptrending moves either stay overbought or give back little while overbought is worked off
OEW pivot support at 1187 and 1176. Pivot resistance at 1227 and 1240
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