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Tuesday, May 7, 2013

Daily update 5/7

The Dow closes above 15000 for the first time.  That should bring out some headlines.  Here is the daily SPX chart.

SPX closed at the upper channel trend line.  Will it react to it?  Does over bought even matter anymore?  Upside progress from here is likely to be slow without a pullback.  Sometimes they crawl up the channel line instead of getting rejected.  Lets zoom in to the SSO 195 minute chart.

So far this break out has not really been tested.  I like to see a close below a prior bar low on this time frame to see how things hold up when there is more then a few minutes of selling.  So far the bulls have not allowed that to happen.  They were actually unafraid to push prices higher today.  However, the rubber band on price is getting pretty stretched now.  Is everybody content to hold or will there be some profit taking?  I guess we will see.


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