Price still has memory.
When it gets amnesia, it will be an interesting sight to behold, indeed. However, for now, we need to pay attention to the 1100 level on the S&P 500. Ever since last Wednesday’s bloodbath, the bulls found support just below 1070. They have also found resistance right smack at 1100, which happened to be the level precisely where the bears gapped up down and held below last week.
Above 1100, you can be sure many buy-cover stops will be triggered for unhappy shorts, and some fresh buyers will emerge as well. Right now, The PPT is implying….well, wouldn’t you love to know that?
Ah, lemmings and nice round numbers.
We break through after a less-horrid-than-anticipated jobs number and when a more-horrid-than-expected GDP revision is released end of the month we reverse course. That’s what my magic ball says and I’m long like John Holmes for another week.
Hey skogie1! I like your thinking 😉
Hi, what do you think of COCO now? Nice up day today with 2x average volume. You plan to get back into this one?
Tempting–it has a HUGE short position and could see a massive squeeze. I will be monitoring it–earnings coming up soon though.
Love your work CnW, a true must read. I bought SIGA 2 days ago with the PPT labeling it oversold, it hasn’t moved at all since then. What do you see when you look at it’s chart? I’ve got a stop loss at the 50d MA. Any thoughts? Thanks!
I think you have a perfect stop loss in place, so you can sleep well. I like it so long as it can recapture the 20 day moving average. This area was resistance back in May. So, if it can turn into support now, it would be very bullish, in my view.