Its been a while, but I'm back with new S&P channel shots. We had some amazing volatility since later last week and then after the weekend break. A lot driven by Gustav, RNC VP selection, and just low volume and uncertainty in the market. And you zoom in close enough, you can even see how the intraday bottoms today even follow that uptrending slope to some extent. This gives me some confidence that this picture is still on other peoples radar too.
So which way? Hard to say...I'd like to think up...there are good reasons to buy in here. But people are spooked too, so its pretty hard to really gauge sentiment. The recent history of the past week or so says we are completely range bound from 1260 to 1300 or so. However, impending breakouts always start before you really expect them, so I think its safe to say we are getting ready to jump now.
Breaking outside this channel towards lower values is definitely bearish movement we haven't seen in weeks. So be wary of that. Also be wary of simply hugging that lower trend line...that shows short term bullish behavior that could easily be smacked by a relatively light bad news event, and leave lots of room to fall without a lot of support lines to break the fall. But if we have nice push back into the middle zone, the bulls will have spoken again that they are not ready to lie down quite yet. If we take off, expect resistance again near the middle and the top of the channel. And anything goes in between, but in the channel is still technically "up".
Be careful out there!
No comments:
Post a Comment