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Monday, May 20, 2013

Daily update 5/20

Hmm.  Today looks a lot like a shooting star candle.  Here is the daily SPX chart.



The move off the last low looks quite parabolic in nature. There are four price bars now messing around with the upper channel trend line.  This looks like a short term topping pattern to me.  I was reading today that this is the longest the market has gone without a four day pullback since 1900.  I don't know if it is time yet or not, but I have to think it won't be too far off.  Unless that kind of pullback has been outlawed of course, LOL.  We have had a long string of up Tuesdays.  Will that continue or is it time to break that streak? 

At 1666 SPX is exactly 1000 points above the bear market closing low.  I find it kind of interesting that it closed there two days in a row in a totally random market, LOL.  These kind of round number things can sometimes stop a market.  However, there is another interesting line here.  Check out this weekly chart.


We touched a trend line connecting the two most important tops of this bull market.  Will that be enough to cause some profit taking?  I guess we will see.

Bob

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