Well it's chop. We all knew it was going to chop for a month or 2 didn't we? At some point, we also know the market is going to fall. But not yet.
Murry T Turtle made mention of the 50 day MA. I am watching this pattern in the 14 dy RSI it look like a Inverse H&S pattern. Now we have price above 50 26 day averages it would argue to get long. I am a ted long at the moment I am sort of neutral but have a long position open. All my decisions have always been based on technical analysis. I would be interested do here your analysis.
For the last few months, every time we have an up day, it's the BULL MARKET, and every time we have a down day, it's a BEAR MARKET. It's sort of amusing, because the market has really not chopped in a normal way for years, and to me, this just looks like chop, not a sign of any market trend (for the record, I still think the trend is UP). In 1999, you could almost predictably see 2% moves every day. The market goes down 2%, the market goes up 4%, the market goes down 4%, the market goes up 3%... That's why the 2000 crash was so devastating. Because what was a 10% drop? Big deal, it'll go back up, buy buy buy! This could be a crash warning or simply the shape of things to come, but it chopped like this for years back in the 90s, and that's why it was so profitable. It was perfectly normal to see a $100 stock move $10 in one day, and the next day fall $3, the day after fall $5, the day after fall $1, the day after go up $8, then up $3, etc. That hasn't happened in years, not to that degree anyway. Right now, to me anyway, it just looks like a return to normal trading. People get so excited over $1 or $2 moves either way now, and call an entire market trend or top because of it. You don't have a TREND til it's down or up for weeks in a row, and I think it's pretty clear that that hasn't happened in a few weeks? That's chop.
From 11-04 till 7-06 was alot of chop but in 9-06 we trended up and out of that chop. 11-04 / 9 -06 did have a slight upward bias. We may chop around in the SP, 1350-1500 for another two years. But who knows.
Took profits in last tranch of NQ. Probably leaving money on the table but am happy taking profits here and letting braver sould hold through resistance if that is where the market is going. Added to EEM puts here too.
Getting ready to load up on SDS when S&P broaches 1445-1450. Service sector data this morning gave me steel balls.