Today I look at where the market topped out and how the volume started spiking up, up about 50% from yesterdays volume. Even though the bears get a very short term benefit of the doubt, we are still trading in an ascending channel and the 200 SMA, which is at 940.23 and is very close, will be a target for the Bulls to want to touch. Therefore the level of 898 remains extremely important as the bulls could want to reverse at that level, a break of that level will mean that the bears have a free ride to the support of the channel and eventually break down the support. The reason the S&P has not been able to break to new highs is due to the weakness in financials. The XLF has broken down a longer term support line and confirmed 2, 60 minute candles below it. Unless we see a push higher for the XLF early tomorrow back into a symmetric triangle, the XLF could shoot down all the way to 11.17ish, where it has strong support and resistance. The S&P will follow the XLF as it has in the past. I also look at SRS very briefly as it shows signs of bottoming out.
Duration : 0:8:22
Today we just give a small update on the SPY as we believe lower prices are here to stay for the short term. This move is really potentially a longer consolidation move for this market 3-4 week market rally. We will start looking at strong support levels tomorrow if we continue to fall down as predicted.
Hey guys,
Today we look at many charts to see if the bulls managed to take us into bull market territory. While it still remains a little uncertain, the VIX held up nicely considering a big rally, and the financials fell from the open consider the fact that today was their day to shine due to M2M approval, led down by WFC/C. We look today at the Dow Industrials, $SPX, SPY, GLD, VIX, WFC, FAZ and SRS. We believe all charts have a common theme, and that we’re on the breakpoint of bullishness in the market but it is a little too obvious and that the big market makers might try to push this market down just once more before we can truly break out. Our longer term view is bullish, but our very short term view (unless we break out tomorrow and stay above S&P channel resistance) is bearish. We took a loss today at the beginning of the day but managed to cut it in half as we took a short mid day at 84.20+ using SDS and SPY puts only to cover them at a 38.2% retracement of today’s move (where support was found). You’re welcome to email Idan at idan.koren@duke.edu or check www.stocktock.com for any further questions.
Today we look at the sudden swings in the market, but we want to focus on the swing trading picture, and see where we are at. The market has been very predictable today, and sometimes it takes modifying your resistance lines to see it. I am overally more bearish, but i do believe a small bounce can be due tomorrow, to form a head and shoulders and then a possible break of the 835-840 level on the S&P.