Good morning. Happy Tuesday.
Heading into yesterday, my very short term bias was up, but with complacency high and the fact that every other bear market rally was sold into, I wasn’t going to get carried away with playing the upside. Yesterday resolved nothing. The market closed where it opened – an equal battle between the bulls and bears. Here’s the 30-min SPX chart. The trendlines currently containing the price action are converging. Pressure is building. Energy is being restored. In an ideal world, support would get tested one more time, but each time the market drops, the risk is it won’t bounce again. It’s been able to absorb large quantities of bad news the last couple months. Cracks have formed, but sooner or later, it may break.
Be conservative here. Ultimately I believe the market heads down again – in a big way – but in the mean time, a continuation of the move up is realistic. This is not a time to put all your chips on the table.
headlines at Yahoo Finance
movers & shakers from MarketWatch
upgrades/downgrades