Yes, I agree… No one wants to go long at these nose bleed levels, but they are afraid to go short. The POMO money (which was very large, as ZH pointed out) only keep the market from rolling over today, as it clearly didn’t produce much of a rally up.
I also think we will sell off into the close, and be down again tomorrow. Since Wednesday will be another POMO day, we can expect a bounce on that day. How high is unknown, but the effect they are having on the market is certainly getting weaker each time.
The earnings are going to have to rally this market higher I believe. But, good earnings are already priced into most stocks, so they really have too beat by a lot to produce any really big move to the upside. I still think the overall week will end down, but be very choppy on a daily basis.
Trading started with asia and london side looking like they might be in for early short entries however due to the news which was released just now everything shifted into buy gear as the companies earnings came in didnt really expect to see such a bounce.However with the buying time over and no more news coming out from now till closing things might stabilize around the region of 11050 i am however hoping for it to drop and close below the 11000 mark before end of trading.Todays POMO amount was relative big but overall i dont think the effect was really strong.This might just mean that overall traders are getting either wise to whats happening or that they are getting more cautious now.Once again they are stuck between 11100 and 10900 cant go up or down but once a clear move is made alot of traders waiting on the sidelines will be jumping in.
That tells me that the market will likely fall tomorrow, breaking the support line from the rising channel it’s in. Then on Wednesday, it will reverse and go back up as the POMO money will help the market backtest the broken trendline.
After that… who knows? I knew was going to be choppy this week.
The spy looks like it’s forming a triangle on the shorter time frame charts. A breakout to the upside or downside should come before the end of the day.
We have POMO in 15 minutes (10:15 am to 11:00 am). The 60 minute chart is getting ready to go into positive territory on the histogram bars, and it looks like we are making a bull flag right now. We will probably move higher soon.
Leo,
The triangle of SPY in hour chart. I hope this is what you have mentioned earlier.
SPY TRIANGLE PATTERN
Yes, I agree… No one wants to go long at these nose bleed levels, but they are afraid to go short. The POMO money (which was very large, as ZH pointed out) only keep the market from rolling over today, as it clearly didn’t produce much of a rally up.
I also think we will sell off into the close, and be down again tomorrow. Since Wednesday will be another POMO day, we can expect a bounce on that day. How high is unknown, but the effect they are having on the market is certainly getting weaker each time.
The earnings are going to have to rally this market higher I believe. But, good earnings are already priced into most stocks, so they really have too beat by a lot to produce any really big move to the upside. I still think the overall week will end down, but be very choppy on a daily basis.
Trading started with asia and london side looking like they might be in for early short entries however due to the news which was released just now everything shifted into buy gear as the companies earnings came in didnt really expect to see such a bounce.However with the buying time over and no more news coming out from now till closing things might stabilize around the region of 11050 i am however hoping for it to drop and close below the 11000 mark before end of trading.Todays POMO amount was relative big but overall i dont think the effect was really strong.This might just mean that overall traders are getting either wise to whats happening or that they are getting more cautious now.Once again they are stuck between 11100 and 10900 cant go up or down but once a clear move is made alot of traders waiting on the sidelines will be jumping in.
Thanks Jim…
That tells me that the market will likely fall tomorrow, breaking the support line from the rising channel it’s in. Then on Wednesday, it will reverse and go back up as the POMO money will help the market backtest the broken trendline.
After that… who knows? I knew was going to be choppy this week.
I do not know if The bears will ever get out of the woods:
http://www.zerohedge.com/article/massive-63-billion-pomo-closes?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+zerohedge%2Ffeed+%28zero+hedge+-+on+a+long+enough+timeline%2C+the+survival+rate+for+everyone+drops+to+zero%29
http://www.scribd.com/doc/39575538/Trillion-Dollar-Deficits-Doesnt-Matter
The spy looks like it’s forming a triangle on the shorter time frame charts. A breakout to the upside or downside should come before the end of the day.
BAIDU Triangle breakout
S&P 500 Near resistance level
We have POMO in 15 minutes (10:15 am to 11:00 am). The 60 minute chart is getting ready to go into positive territory on the histogram bars, and it looks like we are making a bull flag right now. We will probably move higher soon.