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Monday, June 10, 2013

Daily update 6/10

Odd day.  There were more new highs and lows then Friday.  Here is the daily SPX chart.

The 1647-48 resistance mentioned Friday night held today.  SPX touched its 18 SMA, but never made a serious attempt to climb above it.  The trend bias indicator flipped back to down today.  Therefore it did not confirm yesterday's upside flip.  I mentioned it would not take much to turn it down again.  Will it follow through on the downside tomorrow or not?  If it does then the two day bounce was of the dead cat variety and the market will likely head lower again.  A lot of traders will view that as a sell signal.  If it goes up we still have the red lines marking the Fibonacci resistance area mentioned Friday night to deal with.

Here is the latest Nova/Ursa ratio chart.


The 14 SMA is now clearly negative.  This time is different then the other pullbacks this year.  This would seem to indicate we are likely in a correction now. 

Tomorrow could be an important day.  If the bulls are going to do something with the two day bounce they need to show up with cash.  A down day tomorrow will likely send us on a retest of the recent low.

Chart practice has been updated with LTD the stock today.


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