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Friday, September 28, 2012

Daily update 9/28

The overnight gap down was bought, but it took quite a bit of time to turn the market up.  When it did turn up, it stopped dead in its tracks at the gap fill.  Here is the daily chart.


SPX closed back below its 18 SMA which should be a bearish event after just one day above.  Will Monday repeat the pattern of being a down day?  Lets zoom in to the 130 minute SSO chart.


SSO ended up closing just below the first support line.  It is clearly below the 50 SMA, but pretty close to the middle of the price channel.  We have had several white price bars now to work off the oversold blue bars.  The next move could start soon.  Lets go in a little closer with the 60 minute chart.


 Price is just hanging around key support.  The way the 6 and 18 SMAs are positioned, this chart looks slightly more bearish then bullish to me.  However, overnight news could easily send the market in either direction on Monday. 

The dip buyers keep coming out to play, but there are enough rally sellers to hold them off so far.  There seems to be little desire to push price.  Until that changes the path of least resistance is down.

Chart practice has been updated with GRMN as today's stock.
http://traderbob58-chart-practice.blogspot.com/

Bob

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