If you would like an email sent to you when I update the blog please send an email with "subscribe" in the subject line to traderbob58@gmail.com. To be removed use "unsubscribe".

Search This Blog or Web

Tuesday, April 16, 2013

Daily update 4/16

SPX bounced off the trend line.  There are a lot of hits on that trend line.  Isn't it about time it fails?  Here is the daily chart.

SPX retraced about 50% of the move down off the high today.  It closed back above its 18 SMA, but below its 6 SMA.  Lets zoom in to the SSO 195 minute chart.

SSO ended the day right about the red line.  Will that line be resistance or will the bulls power through it?  Lets look at the stocks vs their MAs chart.

It is easy to see the technical damage that was done yesterday.  All the indicators bounced back some today, but clearly the bulls have more work to do.

Breadth was very strong, but the new highs were not.  There were only 90 new highs today.  That is very low for such a big up day and this close to the highs.  That shows a lack of conviction.  Will the bulls show up again tomorrow or will the bears be back?  The low number of new highs today makes me suspect the bears will be back.  SPX needs to get back above 1576 and stay there to get back on solid footing. 


No comments:


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