Market Pulse Monday
We sold all our long positions, making healthy gains from the 1260 SPX support area at the open. Since the banks are not participating in Friday's ramp, we are wary of carrying any longs at the many swing points here. We are on hold long signals, with the area to watch for a reversal being support at the 46.75 QQQQ, 1285 SPX and 11600 Dow. The Yen is at a position where it is near the ABC down projection, so we could see a reversal today or tomorrow, which generally effects our markets negatively. Watch the BKX for further ramps up.... they have to participate. The Transports can't pull all the weight. The ABC Up target on the SPX is/was 1299 so watch that no. Good Luck
Market Pulse Friday
Yep, the BKX is outperforming the SPX. Today's drop was BAC driven and we are back to support there. The UYG couldn't take out the swing for the second time and was even more bearish than before. Not sure what that will mean, but it important that support holds here. They were underperforming for most of the downturn, with technology/oil holding up the SPX. Oil is going to the 38.2 retracement and possibly the 102 "foot in mouth" prediction, inspite of Gleno's guru stuff, that Fish breath pointed out LOL.... I still have a hold long on QQQQ and SPX went to a hold short rating at the close, which I don't trust, because the markets aren't in-sync. Therefore all trades are short lived for me taking profits on all tradeable shorts here.
QQQQ
Area to watch today on the QQQQ is 46.25 for a possible sell signal with any downdraft. This is the strongest index and technically for me the tradable short is at 45.75 and hold short at the 45.35 area. I would stay away from this index on the short side here.
SPX
We had a sell signal at the 1280 SPX and a tradable short signal at the 1273 level down to the support area of 1265. Below that and we would have a hold short.
Dow
We had a sell signal at the 11550 yesterday and tradable short at the 11500 level and ended in-sync with the SPX at the do or die level 11430
Conclusion:
We are not in-sync in the markets. The influence of the banks, dragged the SPX and the Dow down together. The banks are outperforming the two indexes and holding support here is critical for the Bulls. For me all trades are short lived, till we have all 3 indexes together again. We are watching the open today for direction. If the QQQQ breaks support and gives a nt sell signal we may re-enter the short again. We closed all our shorts at the close given the support area here and the lack of consistency in the 3 indexes. upside resistance is Dow 11500 and SPX 1273, watching to see the effect that the drop in oil will have on these two indexes.
Good Luck.
