If you would like an email sent to you when I update the blog please send an email with "subscribe" in the subject line to traderbob58@gmail.com. To be removed use "unsubscribe".

Search This Blog or Web

Tuesday, August 5, 2014

Daily update 8/5

Retest of the 8/1 low.  Here is the SPX daily chart.

SPX almost touched the 100 SMA and did touch the up trend line.  It went fractionally below the recent low, but failed to continue down.  It bounced off the low a bit in the afternoon.  There was a slight divergence in the VIX as it did not get above Friday's high.  IWM and QQQ made a slightly higher low today.  We have slight divergences at MA and trend line support with a short term over sold condition.  Normally I would think that would be good for a bounce.  All that is needed is for dip buyers to show up.  Lets look at the futures chart.

There are a few lower tails on the candles here indicating some buying support in this area.  We also have sellers at the 200 SMA area.  Which side will win out?

In the absence of bad news I would think we bounce tomorrow.  The price pattern on SPX looks amazingly similar to the sell off in Jan.  Look at the chart.

Funny how close the consolidations and break downs look.  If the pattern was to continue to match we would bounce tomorrow.  The higher blue line at that low is the same trend line we touched today.  I am sure the pattern will play out differently at some point, but it is eerily similar so far. Will the dip buyers show up for the buy setup?


No comments:


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