Sunday, August 8, 2010
The next big day in the market was Aug. 6th which was on Fri. We hit a low of 1107 on the spx and a double bottom low of 40.8 on the TNA and took off. The closing was almost positive. The decline from 1128 to 1107 is not big it didn't even meet the minimum 2% required to be called a decline. After the 46.19 high on Monday TNA has had a lower high all the five days of the week and with the exception of WED which was an inside day TNA has also had a lower low. The trend is not really screaming up. If stock values are based on future economic activity and hence profits the news wasn't all that great and GS lowered their estimate of future GDP. Day to day markets shrug off most of these and are reactionary none the less it is a good idea to keep the relevant data. I have a simple calculation for spx which is bullish: 666 to 1220 is 560; 1220 to 1010 is 210; which is (210/560) or 3/8th or 38% decline. Here is the kicker 1010 plus 560 is 1570 which is old high on SPX. Not counting anything out this may be the plan. I have added three charts SPX weekly, SPX hourly and TNA hourly to follow the markets.
I am into 10/20 sma crossing , and DMRM and D2PL for my trading.