Wednesday, September 15, 2010

Lets not be in Denial

I have five charts that I have put up today.  They are all telling the same story some in different language but the moral is the same.  If the newest trend line is from left to right and going up then the trend is up and vice versa.  I will  point out some very minor differences but that in itself does not change the story.  SPX has passed the 50% point at 1115 where as $RUT hasn't.  This is option week and anything can happen but the market has been in a tear. $RUT has gained 11.16% and SPX  8.4%.  September was supposed to be a real bad month but the way media (Maria Bartiromo) has been mentioning it this just may not happen and then the same media can say the experts were wrong.  My study said we would be down 5% or so by mid Sep. here we are up 8.4% My study said we would take out the Aug closing and we are up about 70 points on SPX.  Unless some kind of blood bath starts soon this may be a Sep. that doesn't fall in line.  We did not make a higher high in $RUT and SPX today. negative and we made a lower low another negative.  Indices are close to hitting some class A resistance line and thats negative.  Particularly TNA and SPX on the hourly charts above.  I am turning bullish unless we take out some upward trend lines and start new downward channel confirmed ( down and then a up and a rally failure) I find hard to justify to be bearish.  Modified DMRM is what I will use to guide with tick charts and DKODs. Tomorrow is  a day before triple witching on Fri and there should be some action.  Since we haven't had any down draft IMO tomorrow could be one it may be just a one day event for option balancing.

No comments:

Post a Comment