Bulls need to breakout of 910 SPX at the 50-day MA (even a close sightly below is considered ‘ok’). Bears need to break below 850 and close around 840 or less. This will complete the bear flag and ‘officially’ break the ascending wedge. In the meantime, we’re still hanging out in this zone of nowhere.
None of this may not happen in one day, but it’s getting pretty tight up there. The only difference between the last 50-day MA failure and this one is this time we’re edging up and forming a very volatile flag (technically, we’re still in it). The previous MA failures occurred in 1-2 days…and that was the end of it. The market went down.
The volume has been an issue for some time now and the rally is moving on lighter and lighter volume. I remind both bulls and bears to not become complacent, even if the market has been discounting bad news on a consistent basis. This is not a market where you just buy/short something and leave it alone to go run errands for the rest of the day. Even if you use frequent stops, you’ll get stopped out so much that you’ll rack up significant losses. Only active traders will prosper at this point in the market.
I still can’t believe it’s taking this long to sort out the GM/F mess. As long as this fiasco continues, expect the market to act like some double heroin/coke addict on withdraw. The longer this drags on, the more difficult trading will be.
The Madoff scam shows how incompetent our SEC is in regulating anything. Come on now, $50 billion in losses? How in the world do you hide that? Nothing is reliable in this market as any one “black swan” moment could change the course of the market more than it’s already been changed so far.
Also, don’t forget earnings from key companies coming out this week including, but not limited to: GS, TITN, ADBE, HOV, GIS, CMC, JOYG, NKE, TTWO, PAYX, FDX, LEN, PIR, RAD, ORCL, RIMM, DRI, and many others. We also have several economic reports/announcements coming out this week: FOMC meeting, NY Manufacturing, Housing Starts, CPI, Jobless Claims, Leading Indicators, Philly Fed. There’s no question that the market will be gut wrenching with volatility.
There’s too much shit that’s going to happen (or not happen) this week. Trading this market is not for the faint-hearted.
Be careful out there.
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SPX 3-day
SPX 5-day
SPX 10-day
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Good stuff.
I was hoping for some vampires in that channel or some shit. You know, to suck the life out of traders.
The vampires work at the brokerage houses.
Longs can only try to jump on a ledge again, no one’s buying higher value. Bears want banks to keep their 50% of market cap in, it is their show. They acted to keep 30 from crossing 50 SMA, or 13/34 EMA, but they are also letting green bars guide the way of sheep to market. We are pigs in a mud pen.
Yo Fly stay warm!
BTW, The Madoff thing may BK the SIPC. You might want to lighten up on the old account balances. Fair warning.
That Madoff thing is going to destroy the market. I think people were just stunned on Friday and now that they have had the weekend to think about how incompetent the SEC was (or more likely just looked he other way)they are going to sell this bitch out quickly. When the waterfall breaks this time, it’s going to be like Palin interview after pardoning that turkey.
oh shit, add quadruple witching on Friday!
unleash the fucking bears!
where´s DEVILDOG when you need him?