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Wednesday, February 6, 2013

Daily update 2/6

An inside day after three days of increased volatility.  Here is the daily SPX chart.

Volume dropped from yesterday.  The last three days the market gapped in opposite directions from the day before and followed through in the same direction.  Today we gapped down in the opposite direction from yesterday, but reversed back up.  Shall we play guess the gap for tomorrow, LOL.  I don't think today told us much about the future.  Lets look at the 60 minute SPY chart.

The 50 SMA held as support this morning and SPY bounced up to fill the gap.  Then they sold the rally, then they bought that dip.  The sell off in the middle of the day came on very heavy volume for that time of day.  However, the selling did not persist.  It looks like we have a mixed crowd of some buyers and sellers at this level.  Which one has the bigger hammer?   The 60 minute SPY chart has more big red volume bars then green ones, which should indicate distribution.  However, the daily SPX chart is not showing any kind of negative volume pattern yet.  Everybody keeps telling me we are going up.  I guess we should all just put every penny in the market we got.  Apparently it is a sure thing at the moment.  I don't know.  I guess we will see.

Chart practice has been updated with CTXS the stock for today.


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