S&P 500 - Aug 3, 2012

Nice price move

This must have squeezed the dear life out of so many shorts especially those who shorted after ECB head did his blah-blah on Thursday


I have been of the view that early June gave an intermediate cycle low and a potential yearly cycle low.

So far market has moved in a series of higher highs and higher lows -- the very definition of an uptrend


Yet, the internals, as measured by McClellan and the market structure, as measured by MAI look weak and uninspiring

These negative divergences are not encouraging


Most, if not all good moves start on the back of some hapless shorts getting squeezed dry. But after the shorts are killed, market must expand and advance with good internals


Friday was a good day probably enforced with weekly index options being expired.


Market needs more to, at least, turn Summation positive





1330-1360 is a pivotal support area


The trend is up but it's been weak and is need of expansion of breadth

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