(ZT from gtotoy) SP500 Read for the Week

davidino

SP500 Read for the Week (ZT from gtotoy)
May 23rd, 2011
Going into this week I still believe the market needs more time to digest and set up. Since ripping to 1370 the market has been jostling around the 1338 area like the fat kid in the mosh pit; and for the second week in a row, towards the end of last week we came down through 1338 like a hot knife through butter. It should turn into significant resistance here. We have lost the 20MA but still have the 50 at 1325, a rising trend-line under that near 1320, and the 100MA at 1313.

I am neither bearish nor looking to short anything heavy, but I am still looking for the next level of support to get tagged at 1307. The potential correction numbers off of 1370 are: 5%=1302; 7%=1274; and 10%=1233. My MAJOR support areas are 1338, 1307, 1274, and 1235. You can see that 1302 represents only a 5% dip and nothing really to be overly concerned with. You might be able to talk to me about climbing into my bear suit if we lose 1235 in the not too distant future. One of my classic lines has been “long until wrong”. Nothing really has changed. I am only in two short term trading positions. My powder is dry, and I am ready to jump all over this market when it is ready. “Patience, Daniel san” comes to mind at times like this.

I like the channel that the 60-Minute chart is scalloping out. There is a gap which starts at 1319, and fills at 1312 with the trend-line coming in around the 1307 area. With the way all the sectors and time frames on the SPX look, it would be logical to see that gap act like a magnet here.

As I am writing this on Sunday evening, the dollar is just flying; trading up +.62 at 76.20. It’s putting a lot of pressure on the Futures with the ES trading down -6.50 points. Be sure to look at my two recent posts on the dollar “USDollar dolla’ bills ya’ll” and “It’s still all about the USDollar dolla’ bills ya’ll”

Keep an eye on copper this week. I’d like to see it hold the 401 level. It has made a nice correction of its own recently, so let’s see if it can base out here.

I’d also love a nice flush out this week to 1307, but not expecting it. More choppiness is probably going to become the normal for a bit here still. To get bullish here without weakness, I will need to see 1350 breached and hold. In the meantime, I suggest letting the institutions and their robot minions do the heavy lifting for us here. Very short term holds only. So for this week I will again be focused on buying the intraday dips for possible 2-3 day swing holds. Good luck out there this week, and keep that powder ready for the opportunity to pounce, were it to arise.

chickencoop

bucks

aimei

thanks

MFTHT

3X.

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hunting

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