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Wednesday, May 8, 2013

Daily update 5/8

A little higher yet.  Here is the daily SPX chart.

SPX closed above the upper channel line slightly tonight.  Will it be able to stay there?  Needless to say people buying here are pushing their luck.  Price is really extended.  The number of NYSE stocks above their 50 DMA is now up to almost 80%.  That is getting into the longer term over bought area. 

Even though the volume is not real high, intraday price action looks like panic buying.  Every little dip is bought right away.  No time to waste.  The bulls seem over eager to me.  I guess we will see how it works out for them.  It reminds me of the old movie saying, "bulls make money, bears make money, and pigs get slaughtered".  This chart is starting to look a little piggish.

Chart practice has been updated with FTR the stock tonight.


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