Despite making a series of intraday higher lows and higher highs since the opening gap down this morning, the market remains on shaky ground. The good news for bulls is that the low end of the multi-month trading range on the S&P 500 (and many other key indices) continues to offer firm support at 1300. The problem is that the more you probe a well-defined area of support, the more likely it is to eventually give way. Over the past several months, the 1300 zone has held remarkably well–Most recently in mid-April. After the weakness that have seen of late, especially this morning’s negative reaction to the employment data, those dip-buyers answered the bell again. Heading into a summer weekend, it will be crucial to see if those morning dip-buyers are content to take profits this afternoon, leaving the market in a precarious position, or instead have the conviction to hold into next week looking for a sustained bounce.
Nice post chess, I seriously doubt anyone would be taking any significant positions to hold over the weekend given the Greece crap, Bahrain protests etc, but liked what you had to say. Have a good weekend.
Thanks, you too.
anyone else getting a server error while trying to access the ppt?
I’m getting in no problem Junglee. Did you try clearing your cache?
Email Jeremy if you keep having problems: seasonalityreport at gmail dot com