As you can see we closed above the 50 on Friday, just barely, but closed just under the 100. Friday wasn't very impressive from a bull point of view as the green candle both opened and closed inside of the previous days larger red candle.
The market was set up to potentially break out on Monday, but looking at the futures at the moment, I don't think that will happen and we have more downside on the way.
Here's the hourly;
Assuming the futures stay this way through the open, we'll be looking at a little resistance at 1308 and 1300. After that though is an air pocket with no support on the hourly or daily until about 1280. It will be critical that the market holds that area if it gets down there. The 200 and the previous low must hold. If they break, there will be a longer term lower high and lower low in place. It'll confirm a trend change.
To be honest, I'm surprised the market keeps trying so hard to hold and create a consolidated triangle for another move higher. The Europe news is getting fast and furious, it seems like it's every other day now. Seems it would make folks nervous to be long with the potential of overnight nukes every single day.
Got one more chart for today.. Apple;
I only add charts in addition to the SPX when they are significant or confirm the move in the SPX. This Apple chart is significant.
Apple put in a 7 month closing high on Friday, but it double topped the previous intra-day high. It also has a series of lower lows. Creating what could be a huge expanding wedge/megaphone top. This earnings report will be critical for Apple, the chart is set up either for a big breakout or a big dive.
Futures continued tanking as I typed.
Remember.. US treasuries can stay low like they are ONLY until Europe finally accepts some level of default, which must be done eventually. When that happens for all the PIIGS, they will no longer be the ugly duckling and the derivitive vigilantes will be eyeing the US and UK. Probably UK first, but we'll feel it at the same time.
Europe being so broken is the only thing keeping Bernanke's head from exploding.
GL
CJ
6 comments:
been a buyer all morning,,,looking for a nice rampage into aapl earnings later this week,,,,ez moola here gang
sso @ 51.09, 51.17 & 51.23,,,,,e-z moooola,,,will hold into close,,,,,think we saw the bottom for the week earlier this am,,,,
MACD, Stochs and RSI are not even close to oversold on the daily.
I'd be careful about expecting more than a short term bounce.
I think this market has another date with the 200dma, simply because this market is all about testing the very edge of resistance or support.
imo, i think sentiment will trump out oversold nearterm cj,,,seems as if 9/10 out there are calling for "armageddon",,,,,not falling in love with my sso,,,just making a little bank or hopefully a lot of bank :) ,,,,aapl could very well put a beatdown on the shts this week,,,
well so much for just making a little bank,,,,got the feeling it's gonna be A LOT of bank! lol,,,,,very impressive day for the bulls,,,,put in the low around noonish and nothing but a nice steady climb higher the rest of the day,,,,,finishing well off the lows too,,,,gotta love bull market pullbacks,,
my sso buys from yesterday already up 4.4%,,,,,e-z mooooooola indeed! no need to sell for a while,,,will start shedding shares into new highs,,,,
Post a Comment