One day before May, the Dow Jones has printed a very bearish candle, on volume, after flirting with 13,000 and the 200 day moving average. It really can’t be that easy, can it?
It looks as though there is probably support all the way down to 12,250. A trip to that level would place the index smack dab in the middle of its 2008 trading range.
How grande.
Hollywood ‘Shedder
Good post, SDS touched off its 200 day within a penny and looks very bullish.
I think it just may be “that easy”
The rally from the March 31st low at 1313, still looks like a ‘c’ wave diagonal triangle
see abc here:
http://caldaroew.spaces.live.com/photos/cns!D2CB8C5EBA2ADE86!694/?startingImageIndex=10&commentsExpand=0&addCommentExpand=0&addCommentFocus=0&pauseSlideshow=0
and here:
http://caldaroew.spaces.live.com/photos/cns!D2CB8C5EBA2ADE86!694/?startingImageIndex=10&commentsExpand=0&addCommentExpand=0&addCommentFocus=0&pauseSlideshow=0
as posted last friday. The sell off late today, right from the highs (SPX 1405), supports this scenario. However, the OEW pivot at 1383 has yet to be broken to the downside. Once this occurs the market should head lower in earnest.
Employee — are you really an Employee of the Fly?
If so, he needs to teach you how to create html hot-links….
I believe the information you provided was important, however, so I’ve taken the liberty of embedding them for you:
E8’s First Link (ABC)
E8’s second link (not sure if it’s different?)
E8 — I really liked this slide:
Isn’t S&P 1400 huge for you TA guys? Dow 13k fun too. What sort of confirmation should we look for if this is a bullish sign?
Well, I haven’t charted anything as of the close, but I believe the Dow and the S&P just busted through their primary downtrend lines. Confirmation here is tough. I am still looking for a pullback that will take us back beneath the downtrend line. Confirmation will be when we regain it.
Or, if we pullback and stay above the downtrend line.
Yes, those big round numbers being busted is bullish.
Jake,
Right …. I don’t know how to imbed, but wrong I’m not a Fly slave.
GG, AEM, SLW & PAAS look good after this correction but I’m still expecting a 700 handle and reluctant to buy yet.
I have come to respect EW theory. While we could see the top of resistance at 1438 spx I have a feeling todays 1423 may have been the top …. thinking of shorting MOO and buying pm’s here but still looking for a breach of 1383 before adding to shorts although it may be too late to add shorts by the time that breach happens …. I’m in a quandry wanting to add shorts but Fed action and bullishness from many here are tempering my enthusiasm for shorting though as I type the fade continues …. maybe this is the trap everyone has been expecting but have forgotten with VIX so low and complacency setting in … I’ve been right about so many stocks of late but failed to move on any of them due to my feeling that we are at a crossroads. That has me thinking that I am right again about going long RJA, DBA, PM’s, DO and shorting MOO and financials that I’m struggling to pull the trigger before I miss another good trade…. Fuck ME!!!
Wood,
Re: “Sell in May, go away”…
“they” (of the seasonality camp) also say that the best returns for the market occur from Nov-Apr.
Well, so much for that theory.