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Monday, April 8, 2013

Daily update 5/8

The alternating pattern continued today.  I wonder how far back you have to go to find this many days.  At 14 days we have long surpassed the 1981 instance (12) so it would be more then 32 years.  Here is the daily SPX chart.


SPX closed back above its 18 SMA and above the high from two days ago.  Will the alternating pattern repeat tomorrow or is it finally time to go in the same direction for two days in a row?  Lets zoom in to the SSO 195 minute chart.


If tomorrow ends up being down we could be forming a head and shoulders top.  The neckline is very well formed.  We will just have to see if a right shoulder forms. 

It kind of looks to me like they want to get to a new all time high on SPX.  That intraday high would be 1576.  We got within 3 points of it a few days ago.  I suspect there will be plenty of sellers up there some where.  Did we have enough of a pullback to get there now?  Ultimately it will be very bearish if we get there then sell off hard.  Probably more bearish then if we pulled back here first.  Now we have earnings starting up with AA tonight after the bell.  That throws in yet another wildcard into the situation.  I suspect that one day the market will go the same direction two days in a row.  I just hope I live long enough to see it.

Bob

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