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Wednesday, May 12, 2010

Null day



The word one uses when one does not want to store anything in a computer location is NULL.  That is what it was in the market today a null day. FAS sure was very slow.  TNA the 3x on russell 2000 was on fire.  FAS opened up 2%(0.65) went down 2%(0.65) up 3%(1.00) down 2.5%(.75) up another 3.0%(.95) to close at 32.06 up 3.59%.  The range was rather limited to 1.20.  We had a positive DKOD from yesterday.  Sold my FAS from last night on the second run.  Bought at the decline and sold at few minutes before the end of day.  FAS did not make a higher high it made a higher low thus giving a inside day.  Meaning yesterdays trend which was down should continue.  The top line of the envelope is at 33.27.  Fas also has two horizontal resistances of importance st 33.44 and 32.75.  We are approaching an area where the enemy is quite strong for the rally forces of FAS.  This is not positive.
TNA was up 9.3%.  TNA is up for three days in a row.  Yesterday was a outside day in bull ETFs.  Today TNA made a HH and HL.  The price was up 5 times that of yesterdays yet the volume was down 20% in TNA.  Russell is small cap on NASDAQ and is subject to high levels of speculation.  That is a point to note.  Almost all BULL ETFs are coming up to kiss the DOMAs and TNA in particular is very close. This is also not very positive.
I have 4 lines marked on the SPX  60 minute chart on the left.  1 is a trend line from the 1219.8 top and line 4 is 1181.2 horizontal line.  They are both resistances.  For SPX and the market to continue the rally these lines will have to be over come.  Line 2 is a previous resistance line that was overcome at 1158 and rally continued.  line 3 is a support line that needs to be held in case there a decline it is approximately at 1163.  Today's closing is at 1171 and it is higher than the computer glitch day and the day before that. There is sense of relief on the blogs and perhaps a blind optimism that we are permanently out of trouble.  I become very cautious under these conditions.  Unless we get a rally to kill all those resistances very soon I am getting unbullish.    

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