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Thursday, May 30, 2013

Daily update 5/30

Hmm.  Another afternoon fade.  Some people are still looking for strength to sell into.  Here is the daily SPX chart.

SPX managed to hang onto its 18 SMA again today.  However, it is now getting time to launch or break.  Even though we ended the day up, internally it was a weaker day then Tuesday.  We had 141 new highs as opposed to 247 the other day.  There are now three obvious upper tails in the candle stick pattern.  There is clearly resistance in this area.  Lets zoom in to the 195 minute SSO chart.

Price appears to be forming a triangle pattern here.  Price was rejected at the upper trend line late this afternoon.  That suggests a trip to the lower trend line is likely.  The trend bias is flipping around on this time frame.  It turned down, but was never confirmed.  It flipped back up today, but needs confirmation.  It also will not take much of a down move from here to turn it back down again. 

This still looks like we are in a corrective phase to me.  I think a trip to the 50 DMA is in the cards.


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