Wednesday, September 30, 2009

09.30.09 - Coming Back to the Five Day


After a waterfall start, the Advance - Decline line began to hold its ground about an hour into the day, and prices have been recovering ever since.  As of the mid-day, the QQQQs have filled their loss, and the SPYs are close behind just beneath their five-day moving average.  These last few days have been quite sloppy, and traders need to take note of a) how quickly the sell button was hit, and b) the persistent willingness to buy it back.  Meanwhile, internals continue to improve though I'll be watching that five-day for potential resistance very closely (say SPY $105.75).

3 comments:

zuptown said...

Good action today, first time in awhile I haven't been willing to leave my desk for more than 5 minutes.

Big battle goin' on here...do you think we're in a bear mkt rally or low is in for many yrs?

I think this fight is reflective of a topping process that when resolved would lead to next leg down in ongoing bear.

zuptown said...

*note* -- purely academic for me, as I trade short-term only, until I feel more conviction in longer-term anyway.

Just curious of your position.

jgpietsch said...

Very smooth trading today, unfortunately I didn't take it! No particular reason, just watched it set up and go. Well, there are days like that. To your question, honestly, I just don't know. Fundamentally, we look overbought. However, technically I can only see out one to three days at a time. In that short time frame, I agree!