Tuesday, March 3, 2009

03.03.09 - 1996 Retest

Ha ha ha... from now on I will reference index support levels in terms of year... Support at '96/ Resistance at '98... still Geithner testimony risk, which I don't wish to downplay, but I've been looking for reversal signals during the last hour. The AD-line and Cumulative Tick slopes remain in a primary downtrend, though we've seen some nascent signs of recovery after breaking SPX 700, including Advancing Volume overtaking Declining Volume, VIX reduction, and Tick stabilization. Also note there is asset class divergence today with some major sectors posting gains (Semis & Discretionaries), which I also see as relatively bullish.

I am posting a slightly different chart today showing my ongoing attempts to trend trade without respect to price. I'll write more on this in the future. Meanwhile, hopefully we'll see SPY S1 (say $70.10) support on the 'Geithner VWAP reject.'

Reading: VIX & More on the possibility of a 'Stealth Bottom.'

Never Investment Advice

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