Upside -- 1337, 1345-1351
Downside -- 1323, 1316, 1311
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We'll start right with the charts..
SPX Daily;
Looking at the daily, we stayed above the mid-bollingers after a big up day. There doesn't really look like anything stopping a trip to 1351 except a bump at 1337. The MACD, Stochs and RSI are also in a neutral position, so they support a move higher. There's really nothing in this particular chart to make me think we aren't immediately going higher.
Here's the SPX hourly;
I was honestly surprised by this chart. The hourlies are overbought, today did zippy to correct that situation from yesterday. I would have thought today would have consolidated and brought us down out of overbought to allow for continued move higher, but it did not. The hourlies point to a larger potential pullback still coming to fruition before moving higher.
Other things of note;
The Russel closed just under the mid-bollingers and printed a hammer candle. So the Russsel is supporting the case from the hourlies that we have a larger pullback coming than just what we got today.
Chips were getting hurt from the QCOM earnings after the close today. As I mentioned yesterday, the SOX is an area this market needs to do better in order to make a run at new highs and that isn't helping.
I'm leaning towards a deeper pullback than just the pause we got today, we'll see where we go from there and what kind of support a pullback breaks if we get one.
GL
CJ
8 comments:
Hi CJ just a q,
Is stochastics(>80) the only parameter of hourly chart that reinforces the view that we may be heading for a pullback?
Thanks and Regards
Kaushik
Also because the MACD and RSI appear to be curling back down, although they are not at an extreme level like the stochs are. But which was the slope is pointing is important too.
Looks like more Euro headlines talked the algos into deleting a further pullback.
We just under the first resistance zone now at 1337-1343.
mkt lookin' goooooood today CJ! my sso position up almost 8% since monday,,,,,holding tight for now,,,,,,don't think we pullback until new highs are printed,,plan on selling into the euphoria it will bring,,would be nice if we took out 1351 today,,who knows,,,the bernank may have the power,,,LOL
well that 1343 wasn't too much resistance,,,,i only hope we get that pullback at 1351 to get a full position ahead of new highs,,,,dow should be north of 13k at that point which only puts it less than 9% from ATH's,,,,i felt a year ago the market (dow & spx) was going to be printing new highs by 12/31/12 however that will likely happen well before then,,,,
Must close over 1344.
Otherwise I think the chart will look primed for a sell off from the top of the bollingers.
couldn't close that 1344 cj,,,however imo,,,,the debt news will trump any downside if today was any indication,,,,,hopefully the shorts took heed today as to what's in store for them once the deal gets done,,,,,still can't believe the number of retail shorts out there given we've been in a bull market for over 2 years,,,looks like we're getting a little "juice" in the a/h mkt,,,,,bodes well for another up day tomorrow,,,perhaps we take out 1351????
a/h is saying we're up tomorrow,,,,,possibly big too,,,,imo,,,doesn't look like any pullback is starting tomorrow,,,i'm now leaning towards a pullback at 1376,,,,,then the run to 1400+ into year end,,,,tightened up stops to guarantee i walk with 6% this week,,,
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