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Thursday, June 14, 2012

Daily update

The pattern the last few days is to do the opposite of yesterday.  Will the pattern repeat again tomorrow or will we try to continue up?  Here is the daily SPX chart.

It looks like there is pretty stiff resistance from 1330-40.  The market was selling off in the afternoon until news hit the market.  That makes it rather hard to analyze this thing.  Here is a look at the 130 min. SPY chart.

We closed very near the 100 SMA.  We have neutral price bar colors.  The volume on that last bar was big, but was news generated.  The possible head and shoulders pattern was blown up on the news, but I think the neckline support at 131.25 is still key on the down side.  The longer we stay above that line, the bigger a move down would be if it is broken.  The last bar touched both the 18 SMA and the 100 SMA. In between there, the market will be digesting the news and is probably somewhat unpredictable.  Outside of that range there should be some potential follow through.  I think SPY goes ex dividend tomorrow which will cause some dislocation to this chart.  Here are the relevant numbers for that bar on SPX 1320-34.  The key support line is 1307 on SPX.  I have no idea what happens tomorrow, good luck.


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