Friday, December 14, 2007

12.14.07 - Pivot Resistance

The SPY is finding resistance at its daily pivot line (yellow dotted line). Relatively constructive considering the inflation confirmation though.

"Looks like" the market "wants" to be finding a bottom around here going into the end of the year, but we are so news driven and volatile it's hard to be confident in that assessment. Maybe the shorts will start covering next week going into expiration day to lock in gains.

Cumulative Tick and A-D Line slopes are flat to negative. Not much green on the screen in any investment category today.

WEEKEND UPDATE: I don't necessarily give a lot of weight to the last hour sell-off on accord of the day-of-week, Friday. Note how much volume has dropped off in-spite of the downward-vol and how we are almost back at the -62% retracement off the highs. In spite of the extreme negative reaction to the Fed announcement, the lows from that day have not seen a major violation and now we are in the final weeks of the month, December no less, not to mention leading into option expiration week. Is it possible that a bit of the selling we have been seeing has been tax motivated?

I'm no huge bull here, but I wonder just how much is and how many more shoes are going to fall off the "millipede" (to quote the "Oracle") at this point going into mid-January? Sentiment is SO negative. Goldman reports next week... smartest guys in the room?

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