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Monday, August 12, 2013

Daily update 8/12

Ho hum.  The dip buyers are still active, but so far the rally sellers have been stronger then the rally chasers.  Here is the daily SPX chart.


SPX is approaching the lower channel blue line.  We closed for a second day in a row below the 18 SMA, but not below Friday's low.  That means it is an unconfirmed break.  It also closed above the May high (1687) yet again.  Here is what we do know.  The bulls are defending that May high.  However, bounces are not getting any traction as we have made lower highs and lows three days in a row.  This is the first day that the high was also below the 18 SMA.  It would seem there will be a decision here pretty soon.  If we keep making lower highs and lows it will eventually break down and head to the 50 SMA.  As long as we stay above the May high the bulls can still seize the moment.  Is it going to take some kind of news event to get us out of the narrow three week range?


Chart practice has been updated with GS the stock tonight.
http://traderbob58-chart-practice.blogspot.com/

Bob

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