3 replies to this topic

[crestdorf]

http://img84.imagesh...08/135esgo2.gif

I spoke of moving to day trading tact on a tag of 1517 SPX last week. We are there. My buy sell indicator a conglomarate of stuff like vol, trin and tick are below 135min price chart in red. Notice the levels of selling this week have brought this indicator to levels similar to the extremes of the March low. On a daily chart, this indicator was, this am, at levels signaling a daily basis low generally only occurring after a multi day/week 5-7% down move in the market.
After tracking this deal for more than 10 years I can draw a few conclusions on this behaviour:
1) Big boys were distributing
2) Big boys have stopped distributing

They let up today as they do. The let up has - re fueled the rally. If I were a bear I wouldn't be pleased to see this kind of action. Another wave should follow to....see chart mark. 1526.4 June SPoo as of tonight...at least. The SPX high close is a chip shot as is the high print yonder years ago...There will be much to learn at that level 1526.4 SPOO and how price reacts to it. If it hovers there for 3-4 days just below expect a woosh down....May 22 is cycle date for a high in my book. THAT HIGH DOES NOT MEAN ANYTHING MORE THAN A CORRECTION OF THE TREND. 38%-50% of last leg and then we will see.

So whats the point: 1) Day trade till you get 2 closes over that level from here to there. at that point reward to risk sucks.
2) The charts green X marked the buy and hold time after the plunge low on 3/14. That time is past in my opinion. It may come again with a vengence but why not wait till it proves?


See Rut cash tag of the 50 simple today at low in that indice. Thats the one I like the most with some nice gap tgts in futures of 834.5 and 845 above.

[Russ]

chart from above link:

[denleo]

Excellent analysis. 1525ish is also my short-term target for June spooz. Denleo

[Russ]

How much longer can market go up with the NYMO below the Zero line?