Since the SPX fell thru it's trendline on May 24th, then crawled up the underside of said trendline, then sold off to solid support @ 1490, rose almost 50 points (nice trade!) to what could be anticipated to be stiff resistance @ 1540, and finally stabilized (temporarily?) today by holding on to it's support @ 1510 - you couldn't have scripted this any more logically. And that is what anyone long this market has got to be worried about - the market doesn't follow scripts well.
Tomorrow, Friday has the potential of telling us a lot about the next few weeks/months in this market. I expect we will see some momentum be established one way or the other. Will the bond traders impose their will on the equities markets or the other way around? One or both of 2 things will start what could be a sizable correction - the 10 year taking out 5.25% with authority and/or crude taking out $70/barrel with authority. Otherwise, we probably drift sideways for 3 weeks until Q2 earnings get rolling.
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