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Friday, November 15, 2013

Daily update 11/15

Almost to 1800.  Here is the daily SPX chart.

The panic buying continued today.  There were 233 new highs which was down from yesterday.  The XLF ETF made it above its Sept. high.  However, IWM still has not made a new high.   Here is a look at the current breadth chart.

Both indicators had slight positive crossovers today.  This is still a weak condition as they can easily uncross on a single down day.  Lets take a peak at the weekly chart.

Like daily chart the weekly chart has a blue bar indicating it closed above the upper Bollinger band again.  More often then not the market corrects after that.  It did not the last time three weeks ago.  Will it this time?  I believe we will head down next week.  The Dow is just under 16000 and SPX is just under 1800.  Round numbers tend to provide resistance, sometimes formidable resistance.  With the market spiking up to them it is extremely extended.  I suspect there will be significant profit taking.  The number of stocks above their 200 MAs is only 53% which is considerably lower then it was in Oct.  Market internals continue to be weak.  NYSE ticks were weak again today.  This still looked like a futures driven move again today.  I think this could reverse pretty sharply from round number resistance.  This looks a lot like a blow off top.  Those flush out the shorts and suck in new longs only to pull the rug out.  With the weak internals that could be the case here.  Stay tuned.

Chart practice has been updated with KLAC the stock tonight.

The market and sector status pages have been updated.
Have a great weekend all,

1 comment:

Anonymous said...

Bob, watch the Quarterly!
Roly Taco


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