Today was a perfect walk in the cloud day. Either one was in the correct side from last night or got smacked. SPX opened up 4 points and that was the low of the day and quickly by 6.45 SPX was at 1326 then a slow non stop advance all the way into 12.54 took SPX to the high of the day at 1332.28. The first fifteen minutes produced 18 points and then next 6 hours produced 6 points. Historically the next day is also a higher day even though the pace is slower. The initial jobless claims fell and manufacturing was higher and ADP report high lighted 217,000 jobs added in the private sector. On the basis of the statistics produced by the Government the economy is expanding. an that was the reason for the SPX to be up savagely. Truth be told the administration has spent 2.5 trillion dollars to achieve this "better" jobless situation. Tomorrow is non farm payroll and unemployment stats. It is expected to be "better". No one has yet explained how it went from 9.4 to 9.0% with only 30,000 job gains last month. Voodoo math.
The market was up today and odds are it will be up tomorrow.
This is a 15 minute chart of TNA and starts when it topped at 87.78. It had a 3 in the 1 from 87 to 74 and a c in 1st rally to 84 and c in the decline to 76 and today another c today. As I mentioned in my previous blog this IMO is the c of an abc counter rally. Once this is over around 86 the decline should resume. Anything over 86.5 invalidates that I will have to re asses again.
This is hourly TNA chart showing a fast and a slow channel. Line1 was drawn first then line2 followed by sub- divisions. TNA after showing a shallow respect for the upper half median line, it is on a rally again. The channel is very precise. This is showing early signs that it wants to go higher. I am watching this very keenly
This is daily TNA. I am using this to project TNA at 110 by June 9th. That is 27 months or 3x9 months or 4 x 144 days. 9 and 144 are Gann numbers. That sits on the graph nicely. If the current decline were to follow 2009 September's decline we will see TNA at 73.4 about a dollar lower than previous low to end this pull back. That is my preferred projection.
I am still bearish but very iffy at this point. I have to see a little bit more evidence before I go long or short. Right now I am ninja trader for a nickel (small profits)
Thanks for reading my blog.