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Friday, February 8, 2013

Daily update 2/8

New closing high on SPX.  Here is the daily chart.

We broke out of the consolidation pattern on the lightest volume day of the year.  What the heck does that mean for next week, LOL.  Bulls will say the approaching snow storm kept the traders away explaining the light volume.  The bears might say it is those traders that are most likely to sell strength so the break out happened because they were away.  The Dow did not make a new closing high or close above 14000.  Lets zoom in to the SPY 195 minute chart.

The first bar today had much lower volume then the first bar on yesterday's sell off.  Since it popped out above the multi day consolidation that indicates there were not a lot of weak shorts to cover.  Lets look at the weekly SPX chart.

The weekly chart shows a close above the upper Bollinger band last week, and a hanging man candle this week.  All that occurring at trend line resistance   Here is the all important COMPX chart.

Today was a new high close on the COMPX, but it did not quite close above last year's intraday high.  The volume pattern in this chart sure looks distributive though.  There are a lot of big red volume bars.  That explains why this index is lagging.  This is a critical juncture.  Will it break out or be turned back?  I think the result will be important to the broad market. 

SPX managed the rare feat of going up six weeks in a row.  Will it make it lucky number seven?  I kind of think not, but I guess we will see.

Chart practice has been updated with IRM today's stock.


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