Tuesday, May 22, 2012

Tuesday Evening

SP-500 Daily Chart (End of day)
Close enough to a doji for my purposes and the bottom tail just touched my horizontal support line that's been on this chart since we rolled over in early May.  It's one of several target levels I've been watching.  The last 10 minutes of buying today kept me from mass dumping of all longs.  If we are lower tomorrow after the opening rotation I'll probably hit the eject button and go to the dark side.

Tuesday Afternoon

S&P futures bulls have followed through on yesterdays rally. We now have a short term setup that looks ripe for selling. The reaction to this setup will be an important test for the bulls. The "overboughtness" can be worked off through time as well as price... so I'm thinking if we chop around with a slightly downward bias, it will provide a bullish setup going into the end of the week. On the other hand, if the selling starts to accelerate and we break below 1308ish in the futures ... it gives bears the edge towards retesting the lows from Friday. Either way, it's a tough spot to initiate trades.

Tuesday Morning

and the dog is named Greece
It's only a question of when the rest of Europe makes the same calculations and faces reality.