Looks like we're back testing the broken trendline and are into
an area of pretty good resistance. I'd say it's a decent
shorting op. Also potential neg divergence on RSI 2.
I'm thinking the same thing. I'm wary though of two
things. 1) upper bollinger band on SPX is up at 1438 --
strong straight line moves like this tend to hit that. 2) Whether
this is the last gasp rally before reality sets in (ala July 2011),
or the initiation phase of a multi-month bull run (June 2012), they
both like to seem to smash through all resistance and go for about
100 points. This also points to the 1440 area (also a strong
pivot). That back-test wedge play would also happen up at
1435. Finally, small caps still seem to have a lot of pep --
not a requirement that they lag, but I think they are targetting
just a little higher from here.
I think we at least have a short term pullback, although I've
got stops on my shorts just above, in case the market decides to
take off. The VIX is at 15ish which is pretty low, and it's
also oversold on the Full Sto. I know the VXX can be a
terrible approximation but IMO it is a screaming buy on the 30 and
60 min with nice pos divergence on both.
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$SPX daily
Posted by pebs on 29th of Nov 2012 at 11:26 am
Looks like we're back testing the broken trendline and are into an area of pretty good resistance. I'd say it's a decent shorting op. Also potential neg divergence on RSI 2.
I'm thinking the same thing.
Posted by kalinm on 29th of Nov 2012 at 11:45 am
I'm thinking the same thing. I'm wary though of two things. 1) upper bollinger band on SPX is up at 1438 -- strong straight line moves like this tend to hit that. 2) Whether this is the last gasp rally before reality sets in (ala July 2011), or the initiation phase of a multi-month bull run (June 2012), they both like to seem to smash through all resistance and go for about 100 points. This also points to the 1440 area (also a strong pivot). That back-test wedge play would also happen up at 1435. Finally, small caps still seem to have a lot of pep -- not a requirement that they lag, but I think they are targetting just a little higher from here.
I think we at least
Posted by pebs on 29th of Nov 2012 at 12:30 pm
I think we at least have a short term pullback, although I've got stops on my shorts just above, in case the market decides to take off. The VIX is at 15ish which is pretty low, and it's also oversold on the Full Sto. I know the VXX can be a terrible approximation but IMO it is a screaming buy on the 30 and 60 min with nice pos divergence on both.