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

Friday, April 5, 2013

Daily update 4/5

The alternating pattern continued today overriding the up Friday pattern.  Well sort of.  The market rallied all day from the open so I guess that was not entirely true.  Here is the daily SPX chart.

The green support line marking the March low and the lower channel trend line came together at the price low this morning.  It is no mystery the bulls came out to support the market.  Volume was elevated again today.  SPX closed the big gap by the end of the day as it rallied above yesterday's low.  Depending on what happens next week that may turn out to be a bad thing.  We will see.  Today's move adds even more significance to the March low of 1538.  If we break that we break the uptrend channel and confirm the double top pattern.  Lets zoom in to the SSO 195 minute chart.

We opened up below the first support line, but rallied back above it today.  SSO has come back up to test its 50 SMA from below.  It also has the trend lines from the triangle pattern to contend with.  The price bars are still red and are not positioned to turn green very easily at the moment.

Nearly every Monday this year has been down.  Will that pattern repeat next week even though we are scheduled for an up day based on the alternating pattern?   I read today that this alternating pattern,  now 13 days, is the longest since 12 days in 1981.   How odd is that?  I don't see anything yet to convince me this pullback is over.  The market still has a bullish bias at this point, but there sure were a lot of signs of a top over the last few weeks.  I think caution is advised and let the bulls prove they are still in control.

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

The market and sector status pages have been updated.

Have a great weekend all.


No comments:


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