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Wednesday, October 10, 2012

Daily update 10/10

We got a little more follow through today.  It is a bit odd that the VIX was down on a down day.  Is that a lack of fear out there?  Here is the daily chart of SPX.

SPX ended the day in the area of the last swing low in late Sept.  A break of that low would consummate the double top pattern.  I have put in another support line tonight.  There is a possible support zone between those two lines formed by the prior highs that I have circled on the chart.  The 50 SMA is right at the top of that zone tonight.  I think we are destined to test into that area.  Lets zoom in to the 130 minute SSO chart.

We still do not have blue bars on this chart so price is not extended yet.  It is trying to hold support at the last swing low.  Futures are down some in after hours now, but who knows where they will be by morning.  The bulls may try for a bounce in the morning if the news is not too bad.  I think any bounce from here would be short lived though. 

I will again urge caution being long.  Catching falling knives can be detrimental to your trading account.  Remember cash is a position if you don't short.  Above all honor your stops!  I think we are entering a new bear market and if so they won't all come back.

Chart practice has been update with FDX the stock today. 


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