Monday, January 5, 2009

01.05.09 - Intraday Double Top?

I think we may have seen a double-top on the day against large resistive volume spikes on each effort to break SPY $93.30. This is against the backdrop of widespread overbought readings (see Weekly ETF Rewind). I am also noting that the energy complex is largely floating this boat (XLE +2.59%)...

Countering that technical crystal ball effort, cumulative tick and advance decline lines have been consistently positive sloping, albeit mildly so, and the daily pivot provided strong support at $92.00. Therefore, I would still not get too aggressive on shorts until either the VWAP proves vulnerable and/or the daily indicators turn definitively south. Lastly, I will look to close my profitable TBT trade on any turn in fortune. Obama tax cuts, hmmm...

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