http://stockcharts.com/h-sc/ui?s=$SPX&p=D&yr=0&mn=9&dy=0&id=p70413847164&a=214966864
For 8 days the market has been eating the shorts’ lunch — in the most demoralizing way possible — a tiny bite at a time. Today the market is taking a big bite out of their accounts. And doing it in an emphatic fashion. A close on the highs will take out the May 1 high of 1415.32 and will also take the air out of the bears.
Nothing could more vividly illustrate the wisdom of the old market apothegm: Never trade with an opinion.
Doubters, fidgeters, fence sitters will be pointing fingers at each other and denying the reality of this wave: 52 days, 53 points. They will point out that there is no volume to support the trend — which just goes to prove that volume is a secondary indicator. (And besides that the volume in the futures is breakout volume.) But the next attack will start any minute. The April top is only 5 points away. Penetrate that and the fun starts.
Potential triangle setup in Russell 2k,
Advance/Decline (accumulation) NYSE new high
Dow Theory divergence with transports but often wrong over last 20 years
Cycles of stock markets point into September.
But Bernanke may do the possible to show markets in balance, specially since Obama is behind Romney as per last pol.
So what will I do?
Follow the trend 🙂
apologies for missing this. indicators and systems have been exceptionally unreliable over the past 18 months.