10.26.2011 -- A little clearer each day

Nothing earth shattering today, trading was pretty technical. The rally today though is probably eliminating the possibility that we are in wave 5 down. The only way for that count to stay alive is if we really fall off a cliff here in the next day or 2.

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Key Levels

Upside -- 1257, 1274

Downside -- 1229, 1223, 1207, 1181, 1134

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SPX Daily;

You can see there the market traded pretty technical today. We broke down into the channel and then bounced off the mid-bollingers and managed to get back through resistance and closed positive.

We did wear down support though at the top of the channel and 100dma.

Only other thing of note is that the MACD is now at 17.45.. this is above 5 points off the highest levels its been going back 5 years. 21-23 seems to be a very popular top for the MACD in recent history. The Stochs are also very overbought here and have been.

Turn dates approach. 200dma is within 30 S&P points.

GL

CJ