Holding support – Again!
One might think that back-to-back test of 1175 area should lead to some sort of rally – 1190, 1200?
Yet, one should not forget that this is a market that swings between euphoria and depression at warp speed – a market that lives (and dies) on POMO-POMO-bailouts
We get the market (shark tank) that we get and that’s that
This is a weekly
Notice how index has been testing the same area three candles in row. The week is not over yet, and things may change. I wouldn’t take it lightly on the bulls if they fail the 1170-1175 area.
This is a daily
A move towards the top of the immediate range, 1175-1200 can do quite a bit of good for the technical picture. It can bring the index above the short term MAs and out of the down-sloping channel.
Daily volume expanded above average. Daily breadth was negative.
McClellan is still in need of some positive re-enforcement
Bulls have a good chance to build on multiple tests of support.
It does not matter which chart or time frame I show you, the story’s the same. We have had immediate support tested and it’s up to either bulls or bears to show us what they got
A move above 1192 may indicate a potential for a positive posture.
As long as index stays below 1190, it’s either consolidating or declining.
I reiterate what I said yesterday regarding a new position on a test of support and buying insurance as soon as I had 10 points or so of S&P profit on the position
“the last thing I would want is to be a happy-come-lately chump to be taken to cleaners because I tried to be cute and buy support”
The timing of the message was close to high of the day :-D
Existing positions from lower levels have a clear buffer zone of 1168-1175
OEW pivot support at 1176 and 1168. Pivot resistance at 1187 and 1227
Long term trend is up. Mid-term trend is up. Short term trend is chop-chop around support.
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