No idea what might happen next week because it’s a shortened week and then we’ve got those screwballs in D.C. to deal with. While I was certain that those cowards in the House would do everything they could to avert the fiscal cliff and thus not suffer spending cuts in their home states apparently they’re dumber and more cowardly than I anticipated.
Even with Friday’s panic sell off, $SPX still closed up 16.57pts and 1.17% on the week. I thought we were headed into the abyss Friday but the buying that started around 11:45 continued into the close and squeezed out a bunch of shorts along the way, so there you go.
On the 60min SPY chart below, you can see that as soon as the RSI tagged 30, SPY began to climb. The problem I see on the chart is that the 200EMA, which is right there with Friday’s cluster of candles, sure looks like it wants to roll over. Should that happen, then it would signal a change in trend so this needs to be watched closely for the next few sessions.
Daily chart of $SPX on which I’ve drawn in a couple of new trend lines with dashed yellow lines. This is valid for now, however, if $SPX should take out 1411.48 any time next week, then that would be considered a lower low and could be the first in a series of lower lows. As long as that does not happen, then the up trend should remain dominant. If $SPX were to drop below 1411, then I would get a bearish cross of the 20,20 Sto, if I haven’t gotten one previously. If that should happen, I will probably reduce my exposure by selling TNA or UPRO, or both.
Several months back I mentioned that at sometime I was going to quit posting on a regular basis. I put this blog together to be used as an educational source in which I’ve outlined various chart trading methods as well as how to use various breadth indicators. I never really intended to post something on a regular basis. Initially I thought I might just post something on the weekends or when I saw a potential market turning point in the works, but then I just got into posting more and more often. It’s time now for me to stop posting on any kind of regular basis and my last regular post will be next weekend, just as the new year approaches.
When I first started this blog, I would receive about 20 visits per day. I now receive between 80-100 per day and I want to thank all of you who have made this blog a part of your daily routine for however long that has been.
BTW, the blog isn’t going anywhere, just me.
Thanks & GL in the week ahead.