Friday, December 26, 2008

12.26.08 - Rejected at the Five-Day

Today's opening gap put the SPY just above it's five-day moving average. However, this proved to be resistance, as it often does, and price is now roughly tracing along below this line. That said, Cumulative Tick is largely positive, and Advancing versus Declining volume are keeping well paced and we have thus far found support near the Wednesday highs. Individual sectors are also divergent, indicating no strong market-wide trend. Post holiday trading is light.

10:30AM PST - SPY gap is filled and now we have caught a small bid. Not unexpected, but not alot of significance on the day whatever happens. The more times we test the five-day, the higher the likelihood of breaking through. Just note that it continues its down slope and VWAP may continue to provide resistance.

12:45PM PST - I have scaled back my long-swing trade from Tuesday's close by half.

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