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Monday, July 9, 2012

Daily update 7/9

Since the market didn't do anything today this is real simple.  Here is a look at the daily SPX chart.

We have a hammer candle stick, but the decline is too small to place any meaning on it.  Price bars are still neutral within a short term up trend.

More interesting is the 60 minute SPY chart.

SPY has managed to stay above the 50 SMA for two days now.  We have a lot of tests of that lower trend line and the more a level is tested the weaker it becomes.  We did not make a serious attempt to get above Friday's high.  We have a nice narrow range setup now between the red and green lines.  We also have a gap on either side just waiting to be filled.  That makes this pretty easy.  Whichever line breaks first there should be enough follow through to fill the gap on that side.  With earnings kicking off tonight with AA, we should get resolution tomorrow. 


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