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Friday, January 17, 2014

Daily update 1/17

When I updated the sector status page this week there were three sectors with red bars.  Those are the first red weekly charts I have seen in many months.  the market may be losing some momentum. Lets start with the SPX daily chart.

Hmm, imagine that.  SPX closed at 1838.  Yep, markets are definitely totally random, LOL.  The 18 SMA has moved up to 1837 now so the close was just above it.  No sign of any desire to push price higher.  There are still dip buyers that rush in on any price weakness though.  They rushed in again at the end of the day when when SPX had dropped below 1838.  Lets zoom in to the SPY 60 minute chart.

SPY ended the day slightly below the red resistance line and slightly below the 50 SMA.  We are clearly having trouble establishing even a short term trend this year.  That late afternoon dip was a bit excessive for the potential bullish cup and handle pattern that appeared to be forming.  Maybe the bulls will save it next week.  They are living on the edge here now.  How about a look at the weekly SPX chart.

This was an outside week.  We had an outside day last week that was supposed to produce a trend when we closed outside that day's range.  However, all we got was a reversal after closing below it.  Then SPX closed above the outside day high and failed to follow through in that direction also.  Clearly the bulls and bears are in a struggle for control of the market.  Will a close outside this week's range set the trend or lead to another reversal?  I am hoping I am still around when it decides what to do.

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


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