Good morning. Happy Thursday.
Except for China, the Asian/Pacific markets closed up – there were several 1% winners. Except for Stockholm, Europe is up – not indexes are up at least 1%. Futures here in the States are flat.
Yesterday’s solid trend up day was what everyone was expecting Tuesday – don’t you love it when everyone gets what they want but not when they want?
Here’s the 15-min SPX chart I posted yesterday with a target 1070-1090. So far so good.
And let’s not forget the falling wedge on the weekly. Everyone assumes the head-n-shoulder top will play out, but I’ve seen way too many instances where a failed break down morphs into a bullish pattern and a rally follows.
Short term my bias remains to the upside. Longer term my bias remains to the downside. Know what time frame you’re trading. For now I’m treating this bounce like it’s a bounce within a downtrend. It has a lot of work to do to cause me to switch my longer term bias to the other side.
headlines at Yahoo Finance
today’s upgrades/downgrades
this week’s Earnings Reports
this week’s Economic Numbers
0 thoughts on “Before the Open (Jul 8)”
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It’s a little disconcerting for the bears, but Dow 11,000 is not on the
horizon anytime soon. We have seen a constant series of 90% panic up
days followed by 90% panic down days.
If you are a math whiz do some analysis using panic days as
a criteria and see what the projected net result will be. HW
On your bullish wedge, how would you expect that to play out? Would you just expect a break above the upper descending line, or just a bounce between the lower and upper lines? Or would be something it to break out ABOVE the upper line to a higher level? Usually on a “wedge” don’t you see the lines coming together at more of a sharp angle where the 2 lines eventually almost meet? Then it is sort of like squeezing a watermelon seed, where when the pressure on the wedge gets high enough that it breaks out one way or the other. I guess with a bullish wedge, you’d expect it to break up, but just how far is your target to the upside IF you get that break up?