Thursday, July 29, 2010

07.29.10 - Overdue Technical Pullback Arrives

Here it is, two or three days off schedule, but here nevertheless.  Semi's have really led this move.  I'm watching the SPY closely for indicated support in the $109 range right here near S2 with a possible higher low put in and with the five-day moving average still rising.  However, I'd like to see internals confirm, particularly cumulative tick.  Whether this is bought between here and the high $108 range will tell us alot about the recent rally effort.  Obviously GDP looms large tomorrow. 

This will be my last substantive post at Market Rewind.  Stay tuned later in the day for an elaboration.

2 comments:

Ben Smith said...

Hello How do you know when to buy on to a "leader" such as semiconductors has been.


thanks

jgpietsch said...

Hi Ben, I use relative strength measures, for instance, among the leaders, divide price change by the price change of the SPY, then trade the ranked leader during bull periods. When it drops in rank, it's on to the next.

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