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Wednesday, August 27, 2014

Daily update 8/27

SPX managed to tack on another .1 today.  I heard them say on TV that SPX traded in a .01 range for a record breaking 18 minutes today.  If volatility gets any lower they might as well close the market.  Let see what the daily SPX chart looks like.

Another no volume day.  Is it just me or does this market look very tired?  I know I am getting tired of watching it go nowhere.  There seems to be no energy here whatsoever.  Lets take a look at the futures chart.

The futures broke the uptrend line today.  We got a red price bar for the first time on this rally.  This should indicate we are in a consolidation/pullback phase.  Whether we go sideways or down probably depends on the news flow.  The market is more vulnerable to a sell catalyst now then it has been since the last low. 

I still see the July SPX high of 1991 as key on the down side.  As long as we stay above that the door is open to more upside if rally chasers show up.  So far they have been in short supply.  The last two price bars look short term toppy to me, but they need downside confirmation to be meaningful.  So far we have had low volume and low volatility.  Low volume can also go the other way if something causes people to want to adjust their portfolios and there is not a lot of liquidity around.  That brings us back around to the news flow which is impossible to predict.


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