If you would like an email sent to you when I update the blog please send an email with "subscribe" in the subject line to traderbob58@gmail.com. To be removed use "unsubscribe".

Search This Blog or Web

Monday, July 8, 2013

Daily update 7/8

Another day, another gap up that goes nowhere.  Here is the daily SPX chart.

SPX stopped at the blue lower channel line and lower red horizontal resistance line.  Will these lines be lasting resistance or just a temporary pause today?  SPY has yet another doji day.  It is clear there are just as many rally sellers as there are rally chasers.  Every intraday dip gets bought while every intraday pop gets sold.  Just a few more 10 point gap ups and we can test the May high, LOL.  Breadth was only 56% positive, just barely better then the 55% positive on Friday.  I mentioned that night that bonds getting creamed might have affected that number.  I guess that was wrong.  Bonds were up today, but the breadth was only slightly better.  It is a bit hard to get excited about a break out over the 50 SMA on breadth like that.  Will we keep gapping up or will it roll over?  I don't have a clue.  However, if we roll over here the market could take a pretty good tumble.  This would be a kiss of the blue channel good bye and a touch of the .618 retrace line of the entire sell off. 

Check out the Nova/Ursa ratio.

We have had the biggest spikes down and up in the last year.  The 14 SMA is still below the zero line so it has not confirmed the correction is over yet. 

The only day on this rally that saw a move up in the last hour was last Friday when most of the big boys were out of the office.  Other then that there has been pretty persistent selling into strength in the afternoon.  That is supposed to be smart money time.  It really looks like a pump and dump operation.  Be careful and stay on your toes.

Chart practice has been updated with AMT the stock tonight.


No comments:


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