I do not want to get carried away on this call, since SPX is still above 1200 and is trying to take out 1230. But there is an unfilled gap @ 1156 still looming below. Market will probably go down and see what is there. I expect it to do so in the next week or so. European summit over the weekend will be the catalyst, I hope, to help SPX break out of this 40-point range. My guess, even if we do it to the upside, SPX will fake the move to 1250 and then go back below 1200 to fish for late longs' stops in 1160 - 50 area.
Wild prediction - has been done, successfully, a few times this year :)
Hey, it's Adam @FX_Button. I just saw your message on twitter and checked you out. Nice, straightforward commentary. I just finished writing something similar about the S&P 500 on my blog. Cheers, Adam
ReplyDeleteThanks Adam. I greatly enjoy your commentary as well. This is definitely a bull trap.
ReplyDeleteFolks, here is the link to Adam's post http://fxbutton.com/sp-500spx/sp-500-chart-analysis-and-comparisons/1778/
OMG I just love Adam's comment that this is a fakeout move in the S&P but it could last another 40-50 points. WTF? So at 1285 this will be a "fake" move up. Are we not just extending the range higher? We could rotate back down at any time. What is fake? Markets rotate. I'm all for trying to predict what is going to happen next but saying the market will be going down 50 points but might go up 50 points first is pretty much saying "I don't know what is going to happen" And that's ok. Just breath deep and say it out loud 3 times. You'll feel so much better.
ReplyDeleteGreat last comentary!!
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