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Wednesday, May 16, 2012

SPX daily update

The chart is getting interesting here.  Check out the daily chart.

We are down four days in a row and the last two closed near the lows of the day on increasing volume.  The selling seemed to be a lot less aggressive today so we may be getting sold out in the short term.  This looks like a good setup for a potential bounce.  If we do get a bounce, I would expect it to be of the dead cat variety given the look of the weekly chart.  The market has a lot of work to do before a sustained up move could happen.

I see that Facebook is scheduled to start trading on Friday.  There is so much hype surrounding this IPO that I have the feeling they will try to make sure there is a gap up that day to get everybody feeling good.  I will be watching late tomorrow afternoon to see if people try to front run that potential gap up. 



Anonymous said...

Bob, what should we look for late tomorrow ?

Traderbob58 said...

A move up in the last hour, often it happens in the last 30 minutes.



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