On the downside we have 1300, 1295 and then 2 different areas of support between 1285 and 1277. Below 1277 would target 1250 as a last gasp of support.
-------------------------
(original post)
IBM posted good earnings, presumably thanks to the global government debt boom. Will it be enough to lift markets?
Several charts tonight, so we'll get right to it;
SPX Daily;
We closed back under the 50/100... AGAIN... That area doesn't seem to really provide any resistance or support at this point. We tend to trade over or under it during the day with ease.
I marked in circles where our bounce today originated from. It's the third time we've pinned that exact spot intra-day and bounced off it. I will note that the previous 2 times, it was good for a pretty decent move north directly afterwards. We do have to contend with the 50/100 though this time. Based on this history of this spot, for whatever reason, if we close back over the 50/100, I think a move 20-40 points higher would be likely.
SPX hourly;
Here we have a potentially bullish falling wedge inside of what could be a larger neutral pennant. We wouldn't have to move very far north to break that falling wedge. My feeling is that we may stay in it until we get closer to the bottom of the pennant, but something like IBM today can swing that in the bulls favor.
Some other key things today....
The Russel joined the SPX;
The Russel lost the 50/100 for the first time in a month and a half. It's again cruical for the market that it and the SPX get back over those moving averages.
And finally.. The XLF looks terrible, it appears to be in a confirmed bear market. While the SPX and overall market could make another run without them, I don't see how we can have an extended robust bull market with the financials in a confirmed ugly bear market.
There's just nothing good in that chart for the finnies.
Tomorrow is another critical day. The DOW and Transports are still hanging on and IBM should keep the DOW in that position tomorrow. The Transports are dangerously close to joining the Russel and SPX.
If we lose the Transports, Finnies, Russel and SPX. It will just be a matter of time for the Industrials.
GL
CJ
3 comments:
apparently so cj,,,,my sso buys are already up 2% from yesterday,,,holding through todays close,,,,,not thinking of unloading anytime soon,,,,nor expecting any sort of pullback during earnings season,,,,overall they'll be better than expected (cept for ol' goldie--heh heh),,,,looks like another beatdown on the bears today,,,,,keep the gloom comin' ROFL ROFL ROFL
yawn,,,such an easy call on new highs coming,,,,ibm lands the first blows to the shorts,,,and bammm!!! aapl in with the knock-out punch,,,,down go the bears!!!!
the only question regarding new highs is,,,,july or august?????
da bull is alive,,,,,and doing quite well,,,,,
keep up the good work cj! how's 1370 lookin???? me thinks quite tasty,,,,
my sso buys from yesterday already up 4.4%,,,,,e-z mooooooola indeed! always easier being long rather than short in a bull market,,, no need to sell for a while,,,will start shedding shares into new highs,,,,
Post a Comment