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Friday, August 24, 2012

Daily update 8/24

The bulls showed up today like the charts last night suggested they might.  Lets see what happened to the daily SPX chart.

The 18 SMA provided a bounce as it often does.  However, the bounce was not strong enough to turn the bar white and also came on falling volume.  We had 91 new highs so it was not particularly strong in that respect either.  Lets zoom in to the 60 minute SPY chart.

SPY tried to get above the 50 SMA twice, but failed to stay there.  SPY filled the 8/23 gap down though.  That means there is no unfinished business up here now.  It could easily turn back down again on Monday.
Both breadth charts still have negative crosses. 

We are in the gray area here.  The weekly and monthly charts are still green and we have not broken any important support levels.  That makes the action a little hard to predict.  The breadth and new high data look like we have turned down, but we have not had a decisive down day yet.  I think the key support on SPX is 1390-1395.  Until that gets broken the bulls could save the day.  I will be watching that 60 minute 50 SMA for a clue the bulls are back.  I think that is the lower odds scenario though.

The chart practice site will now be using current charts.  It has been updated with a look at GS.  You can look at the stock with your own chart setup and time frames and see how you do.  We will see what everybody thinks and watch the results in real time.  http://traderbob58-chart-practice.blogspot.com/

I want say a special thanks to all those that peruse the adds while visiting the site and to those that pass the site on to friends. It is very much appreciated.


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