Monday, December 20, 2010

Always important 50%

SPX made a HH and HL  and SPX closed in the plus column that is positive   Range was 9  points.  SPX made the low of the day a few minutes after 8 and high of the day at few minutes after 11.  It then lost 40% of today's low to high near the close.  SPX finally closed at 1247.08 only 0.33 from the decline low.  The rally from low to high was impressive and gradual.  RUT was similar HH , HL and closed positive.   RUT had  High 785.86 , Low 778.79  and close of 782.3 That was exactly 50% of the low to high range. 

The chart above is my hourly SPX.  I have posted this chart many times.  The thing I am watching are 64 hours left on this up move ; DOMA 77 ; and break of the top line.  I saw a small crack in SPX today.  A little pull back to the 1223 area would put it at the median line.  
The chart on the left is FAZ.  This is a difficult one to read.  It is riding on the median line it hasn't crossed DOMA 77 to the upside. FAS its compliment is struggling.  A little lively action would make it more definite to make a call.  I want to be bullish on it but I will wait until everything is in place.  A break above the top line of the channel would be a clear signal but that is at 12.2.  
The chart on the right is TNA hourly.  I have readjusted the channel to accommodate today's high.  This is the one that showed most promise to the down side.  When (not an if anymore) there is pull back  it will have support at 68.  Below the DOMA 77 is where I would short with convivtion.
I am expecting the next few days to be boring as more people pay attention to other more important things like Christmas. It is better not to trade as the returns are hard fought.  
I am bearish for tomorrow for 2 reasons one Tuesday opposite of Monday and both RUT and SPX have been up for 3 days in a row.  
Thanks for reading my blog and offering me encouragement.


  1. Dino
    Your posts are easy to understand and a solid learning tool. thanks for your efforts and happy holidays

  2. Thanks hoop52 See you at the CIL