Nice catch Leopisa… yes I could see a move down this Thursday and Friday. We have Bernanke speaking today at 10am and again tomorrow at 10am. This should keep the market up and let it hit the wall of resistance in the 1370 SPX area.
First off, the line is rising and should be around 1355-1358 SPX by Friday… which isn’t too far from 1370 SPX, which leads me to believe that level of support won’t hold and we’ll drop to the horizontal support at 1337 which by Friday the rising trendline below that (around 1325 today) should be getting close to 1330… adding more support.
So, based on how overbought the short term charts are right now I just can’t see it not breaking the first rising trendline of support (around 1352 today) and failing back to the horizontal trendline or the next rising trendline (around 1325 today).
After that we’ll re-evaluate the charts to see if they have one more push higher in them or if this is the start of a very large move down. Interestingly enough, this article by ZeroHedge shows some scary chart comparisons from where we are now and where we were last year.
So having a big “surprise” down day on this coming Thursday makes a lot of sense to me… expecially since it’s a ritual “eleven” day. (0+7+1+9+2+0+1+2=22/2=11)
Yeah. Then rally up nicely before the games would make sense… Especially if they have any intentions of pulling something. They did this crap before they said no qe3 last year… Peaked the market nice and high, and then no bailout…. seems logical to me to get the sheeple in on the rally
Yes… very boring. All this sideways chop is just putting in a bull flag for tomorrow I believe. However, I think we’ll put in the high for the week on Wednesday and then drift back down some on Thursday and Friday.
What “new weekly options” are you talking about? You mean the ones that expire next Friday I’m assuming (which aren’t out yet)?
ah, too bad the new weekly options won’t be out until sometime Thursday though.
Nice catch Leopisa… yes I could see a move down this Thursday and Friday. We have Bernanke speaking today at 10am and again tomorrow at 10am. This should keep the market up and let it hit the wall of resistance in the 1370 SPX area.
At that point I would go short for a move down, but how far down is unknown? As I pointed out in this chart (http://content.screencast.com/users/RedDragonLeo/folders/Jing/media/dfd3d6fa-6511-4e8d-8840-2fbabafc3aa3/2012-07-16_1435.png) the market has 3 trendlines of resistance in that zone. But my thoughts about it only dropping to the rising trendline of support around 1352 by Friday could be wrong.
First off, the line is rising and should be around 1355-1358 SPX by Friday… which isn’t too far from 1370 SPX, which leads me to believe that level of support won’t hold and we’ll drop to the horizontal support at 1337 which by Friday the rising trendline below that (around 1325 today) should be getting close to 1330… adding more support.
So, based on how overbought the short term charts are right now I just can’t see it not breaking the first rising trendline of support (around 1352 today) and failing back to the horizontal trendline or the next rising trendline (around 1325 today).
After that we’ll re-evaluate the charts to see if they have one more push higher in them or if this is the start of a very large move down. Interestingly enough, this article by ZeroHedge shows some scary chart comparisons from where we are now and where we were last year.
http://www.zerohedge.com/news/its-different-time-scariest-equity-market-chart-around
So having a big “surprise” down day on this coming Thursday makes a lot of sense to me… expecially since it’s a ritual “eleven” day. (0+7+1+9+2+0+1+2=22/2=11)
how bout 07/19/2012 as a ritual?
I have the exact same outlook Red.
Not sure if thats a good sign..or a that we’re due an imminent 1000pt sp hyper- ramp 😉
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Looking for a re-short around 1365/70 Tue/Wed.
Good wishes!
S&P 500 Analysis after close:
http://niftychartsandpatterns.blogspot.in/2012/07/s-500-analysis-after-closing-bell_17.html
Apple chart analysis:
http://niftychartsandpatterns.blogspot.in/2012/07/apple-support-and-resistance-levels.html
Here’s what I see for the rest of the week…
http://screencast.com/t/Ff59iVoJlnZ
Yeah. Then rally up nicely before the games would make sense… Especially if they have any intentions of pulling something. They did this crap before they said no qe3 last year… Peaked the market nice and high, and then no bailout…. seems logical to me to get the sheeple in on the rally
Yes… very boring. All this sideways chop is just putting in a bull flag for tomorrow I believe. However, I think we’ll put in the high for the week on Wednesday and then drift back down some on Thursday and Friday.