AI
Tuesday, May 12, 2009 9:22:47 PM
Cliffbrook, (see chart below). The overall structure of this market remains up, the game for the last 2 months has been The Big Bear Tease, and as much as you might not want to hear it, I believe that game is still in play, will continue in play until the market finds a wall it can't climb. We have not found that wall yet. The top blue line in the chart below may provide a pretty good wall.
Therefore, there is a high probability that:
1) The SPX will test that double top and perhaps will touch between SPX 940 and 960.
2) The $NDX will turn the daily stochastic around one more time to gain some altitude and buy time, letting the 50-day ma rise a little more before touching back to test the 50-day ma.
The alternative of course would be the $NDX dips directly to test the 50-day ma. Absolutely could happen. However, I have to go with the current market structure and the Big Tease game until I see a signal to the contrary.
Looking for another rally soon in a market near you.
Ted
Therefore, there is a high probability that:
1) The SPX will test that double top and perhaps will touch between SPX 940 and 960.
2) The $NDX will turn the daily stochastic around one more time to gain some altitude and buy time, letting the 50-day ma rise a little more before touching back to test the 50-day ma.
The alternative of course would be the $NDX dips directly to test the 50-day ma. Absolutely could happen. However, I have to go with the current market structure and the Big Tease game until I see a signal to the contrary.
Looking for another rally soon in a market near you.
Ted
Join the InvestorsHub Community
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
