Impelled by GOOG and AAPl the Q’s broke above their April high, which must be taken as a very bullish sign until proven otherwise. Meanwhile the S&P and the Dow appear to be either at resistance, or overcoming it. Also awaiting proof. Even if they overcome this resistance (represented by the horizontal line) they must still do as the Qs do –break the April high. Which means that if they overcome this resistance they have just entered a larger trading range. But, hey, there’s hay to be made here.
Our S&P trade entered August 27 is up 13% (if saying this doesn’t curse it, nothing will).
We suspect that next week “they” (the contrarians, the double dippers, the mischief market makers, the purveyors of evil (except when we are short)) will attempt to torpedo the market using the mortgage robo signers as an excuse. Of course a downwave will be totally technical, but let them labor in ignorance.
Get your costume ready for Halloween.