You should have dumped everything. We were not able to close over the recent highs. Heavy resistance encountered and could not make it through the old highs. Even though the bulls regained their footing and drove prices higher by the finish, the appearance of this selling pressure after a rally is a serious warning signal.
HA ha your posts are funny. It was a breakup, not a breakdown. You need to do the opposite of your TA signals. Flip the chart 180..I dunno your more wrong than a broken clock...
I would have to agree with michaelscott: the stock market is headed for more downward motion. I could be wrong, but looking at the charts, it sure looks like it now. Today was a crazy shanghai and fed backlash episode. Some "buy the dippers" were in there too. Let's see what happens tomorrow.
So basically, you have no conviction about anything.. thanks.. Hey, weren't you the guy who just was calling for us to BUY THE DIPS 2 days ago...then, you want to get short? And miss this big rally? Huh?
You guys are high.. the market made a clear breakout at 1524.50.. Targeting 1537.75, then 1546... look at the volume! don't people look at volume anymore? Big buy programs...
Couldn't it possibly be another bear trap that's setup and now is about to ready to snap off a couple heads as we move higher
Even I agree. There is a difference being bearish about the economy and being bearish about the markets. The markets haven't really show very many signs of abating their climb to the heavens...I'd not be surprised to see a correction, but I'm no longer waiting for it or expecting it to be serious...not until at least some signs of sanity reach this market. It's still being bought up in large amounts...I'm happy to wait for it and ride up on the tide of new 52 week highs as it moves. I don't even think we'll see an insane selloff because bulls are so immune they'll just buy it up...it's only the day that a black swan shows up or bulls run out of reasons or money that we really see a hit. When/if that happens then it's time to react. Now it's time to make money being bullish in bullish stocks, you can still be bearish in bearish stocks.
My mind changes with this chart. You can see what happened in February when the SPX was funneled into a symetrical triangle. The highest point of the triangle being 1326.70 and the lowest point being 1219.29. The difference being 107.41. 1461.52-107.41= 1354.11, actual price was 1363.98. Each line on the chart represents a key support or resistance. When two lines come together and price is funneled in between two lines, then the price has to make a decision. Since this is an upwardly trending chart, when two lines come together it usually means down. The top horizontal line is the toughest resistance of any of the lines on the chart as it represents the 2000 high give or take a few points. You can see other lines of support and resistance also converging together right at that one point. There could be other lines as well that I did not draw, but everything converges at that one point which tells me that there will either be a tremendous breakout once it clears that point or the price will have to pull back to the path of least resistance which would put it somewhere in the air pocket at 1450. The past super drops on the SPX have been the following: Feb 05= 93 points Aug 05= 77 May 06= 107 Feb 07= 98 Avg= 93.75 1532.41-93.75= 1439 High drop= 1425 Low drop= 1455 Im saying it will be tough to move past the resistance. If it does, which I do not expect, then it will break out with the target price being 2200 in 2-4 years then at which time there will most likely be a macro pullback. However, somehow I feel it will pull back to the pocket at this time. The reason why it will do this is to clear away from the different lines and then make another attempt. You will notice how the price is now being funneled into the apex of an upwardly sloping triangle. One end of the triangle sits almost exactly at 1363. The top part of the triangle is at 1461. 1461-1363= 98 1532-98= 1434 You young guys like to place bets before the horses are out of the gate. I like to place bets after the horses leave the gate otherwise how will I know who wins? Thats why this seems a little vague. You guys want firm answers, but thats not how we get rich, thats how we go broke and thats how we get divorced. The decisions change with the geometry of the chart. If the horse gets above 1532 with volume then the next short term price target will be 1630. However, a failure in the apex of the triangle means certain disaster with the price falling to the mid 1400s.