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Friday, January 3, 2014

Daily update 1/3

Inside day.  Was that a consolidation to go lower or the start of another bottom?  Here is the SPX daily chart.


The volume both yesterday and today is rather low compared to last fall.  It is up from the holiday week, but not robust by any means.  With the holiday mid week I am sure a lot of people were still off.  I suspect volume will come back to normal next week and we will get a real idea of where we are going from here.  Lets zoom in to the SPY 60 minute chart.


SPY tested to the upside a couple of times, but failed to stay above its 50 SMA.  I put in a resistance line at the tops in case it comes into play in the future.  Today I am sure it was because of the MA.  I also added a trend line across the lows that started yesterday.  We have an ascending triangle forming here.  We ended the day at the lower trend line so a bounce or break is likely early Monday.  Breaking the upper line should mean new highs.  Breaking the lower line would likely send SPX down to test the 1808-1812 support area mentioned last night.

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

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