Tuesday, May 27, 2008

05.27.08 - Depressive

Sorry for the late post -- as it turns out -- not much has changed since Friday. We got a little bit of a bid at the open that quickly turned around with the latest economic stats. Funny how Yahoo! Finance started out with a positive take on housing, and moments later changed the headlines to focus on the negative. I swear the tone was about as depressing as I've heard in the mainstream last week Friday. We need some sunny days here to turn around this depressive disposition -- I'm not kidding!

Meanwhile, we remain deeply oversold on a short-term basis. So far we are holding the line today... perhaps we'll see some more buy enthusiasm going into the close. I'd expect to challenge SPY $138.80 if we do.

2:10PM CST UPDATE: "Jeff, How did you KNOW!" Read the post again, we have been deeply oversold, particularly in the financials. Here we are at the start of a holiday shortened week going into the end of month. Once it was clear we weren't going to get taken down below Friday's lows and with oil down, the upside target for a first hit and pause was based on the intersection of the five-day MA and R1 for the day. [edit: remove nonsense]


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