If you would like an email sent to you when I update the blog please send an email with "subscribe" in the subject line to traderbob58@gmail.com. To be removed use "unsubscribe".

Search This Blog or Web

Thursday, June 21, 2012

Daily update

The old hanging man pattern played out again.  Here is the daily SPX chart.

I would say that qualifies as a break of the lower trend line.  We also closed below the neck of the inverse head and shoulder pattern everybody was talking about.  We are still above the 18 SMA.  Overall this makes the short term trend neutral now.  Here is a look at the 195 min. SPX chart.

In looking at these price bars I noticed there was some pretty clear resistance that was below the neck line.
We stopped in that area today.  There could be some support in here. 

Here is a look at the current breadth charts.

Both the 10 DMA and McClellan breadth charts are positive.  In fact, they are still quite strongly positive.
Normally the market will retest or at least get pretty close to a high with this strong of breadth readings.  When it does not, it means the news flow has really changed peoples minds and is a significant event.  Until these breadth charts get negative and the daily chart gets red price bars it is not safe to pronounce the rally over.  The bulls can show up with surprising force sometimes.
We had an extreme closing trin reading of 3.5.  This usually leads to a bounce the next morning.



Buffalo Soldiers said...

Bob, I'm trying to figure out the MAs that you're using (Simple vs Exponential). Have you already given out this info?

Buffalo Soldiers said...

And I trying to figure which MA is the red line, the yellow line and the sky blue line, lol?

Traderbob58 said...

I have talked about most of them in posts. I will update the price bar page with a description of what all is on the charts as soon as I can.



The information in this blog is provided for educational purposes only and is not to be construed as investment advice.