Monday, November 8, 2010

Both eyes open

SPX had a LH and LL this in itself is negative for markets for tomorrow.   Markets opened slightly lower and made the low of the day by 8 am next 4 1/2 hours spx rallied 6 ponts and closed .01 above the open at 1223.25.  The range was only 7 points.  Some guys play the close below the open is negative for next day and close above the open is positive for next day.  Like over/under in football.  Even that is tough to navigate when you only have .01 to watch.  RUT also had a LH and LL but closed in the positive and above the opening.  
The chart on the left is hourly spx. It is at the median line.  A turn here would be appropriate to trace out a 4 having finished a 3.  The only condition is if we have a decline it shouldn't go below 1130.  Am I getting ahead of myself.  Perhaps.  3-4 days ago I found a few bears and a lot of bulls in the blogospehere.  Today and Fri. It is mostly bulls a very few bears.  While we are in a bullish trend it is probable that we get a good hit to 1207.  I would be watching the trend lines closely.
The chart on the right is SPX daily.The H&S seems complete.  The trend line is resistance.  The angle of ascend is little too steep and has to correct.  To me it looks bearish.
I would lean on the bear side but as with other things I will play the signals.  
I big word of caution.  Myself and some of my friends like EW trends and charts and others write these blogs to express our opinion.  In the process if you pick up a pointer or two great.  We do not charge any monthly fee and that leaves us to be very objective.  Many charge you 30 - 50 bucks a month and give you advice without any formal training or license.  I would really ask you think twice before investing $100k based on some ones advice for $1 a day especially when they claim they are now sensei of EW. IMO some blog advisers are no better than cabbies of Manhattan.   As the market goes higher it is not uncommon for few ill trained folks show up and claim exorbitant returns.  It is time time keep both eyes open. Just a thought

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