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Friday, March 22, 2013

Daily update 3/22

Instability creeping in.  Up one day, down the next.  Here is the daily SPX chart.


Volume was lighter then the last up day and breadth was considerably weaker (71% positive to 59% today).  The weekly chart has a hanging man on it again.  We have had some before on this rally that did not see downside follow through.  However, this one comes with TLT looking like it has bottomed.  I think that increases the odds for more downside considerably.  Lets zoom in to the SSO 195 minute chart.


SSO ended the day just below the lower channel trend line.  I have added a red resistance line as it appears
there is some resistance forming just a little higher from here.  Will Monday continue the recent pattern and be down? 

Unless TLT breaks down again I think it is just a matter of time before stocks turn down in a meaningful way.
Today's bounce had less energy then the last bounce.  Are the dip buyers running out?

Since the market has not sold off on Cyprus fears, a positive resolution will not likely provide much upside.  Should some kind of market unfriendly resolution come out, there could be some real down side though.  I don't know how much risk there is in that happening, but it should all be resolved soon.


Chart practice has been updated with VMW the stock today.
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.