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Friday, May 3, 2013

Daily update 5/3

There we go.  I am glad to see some things remain the same.  When this market runs into resistance it can't get through during the day it gaps up and over it in the night. We can all celebrate now.  SPX climbed above 1600.  Does that mean all is well in the world?  I will let you be the judge of that.  Here is the daily SPX chart.

SPX closed above the red line.  The last time it did that it had a significant pullback.  The price bar is blue so we closed above the upper Bollinger band which makes price extended.  Volume was not particularly heavy today.  There was no sign of a buying panic that could indicate a volume climax top.  In fact, after a little short covering early in the day there did not seem to be much buying interest at all.  That could be a problem, but too soon to tell.  Lets look at the 30 min. SPY chart tonight.

The market essentially found its high in the first hour of the day.  It spent the rest of the day drifting lower.
That is not the strongest looking break out I have ever seen.  Bulls would like to have seen another wave of buying in the afternoon.  Look at that high volume down bar at the end of the day.  It was almost as big as the volume on the opening bar.  Was that big money bailing out? 

The old high in the 1595-97 area should be support if tested.  If that fails, then we have a break out failure which should bring out some sellers.  We will have to see if there are enough rally chasers to push this market higher.  They did not really seem to be around much today.

Chart practice has been updated with TROW the stock tonight.

Have a great weekend everybody.


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