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, May 24, 2013

Daily update 5/24

The song remains the same.  Gap down and rally back to fill the gap.  The last 19 Tuesdays have all been up.  Will the streak continue or will it stop?  Here is the daily SPX chart.

SPX is holding above the 18 SMA.  Volume dropped way off today as a lot of people probably took off to make it a 4 day weekend.  The last two days have started with big gaps down with very little follow through selling.  That could be because longs did not want to liquidate into the down opening.  We have not gone down far enough to create any panic type selling.  Bulls of course are claiming victory and this is a sign of the market's strength.  Both days we closed the gap and stopped.  People were not able to push price into positive territory.  The Dow eked out a slight gain today, but other indexes did not fare so well.  There were only 59 new highs today.  A few more then yesterday, but no sign of real strength.  A lack of panic selling isn't always good.  If price keeps falling panic will happen at some point.  If it starts at a lower level it makes for a bigger pullback. 

Here is the weekly chart.

The trend line connecting the last two highs held as resistance this week.  This really is a good place to start a correction from.  Time will tell.

Today was an inside day.  The low was pretty close to yesterday's though.  I think yesterday's high and low are the key price levels in the short term.  A break of that high could bring in buyers and retest the recent high.  A break of that low should usher in some real selling.  I think the drop in new highs is a sign we have entered a correction.  However, I want to see some actual selling before I can say that is the case.  Other then the key reversal day all the intraday action has been to the upside.  This does not mean there won't be sellers if they get strength to sell into, but until it happens we won't know.

Chart practice has been updated with DIS the stock today.

Have a great long weekend all,

No comments:


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