Wednesday, September 26, 2012

SPX Daily

SPX Daily
We are finally seeing a decent pullback in the S&P500 and working off some "overbought-ness". The 50day SMA is currently about 1410ish, and you can see the high volume zone between 1400-1420 on the chart above. I'm expecting the bulls to make a stand in that area the first time down (assuming we get down that far).

Intraday update

S&P futures bears started pressing right at the cash open... and have carved out an 11ish point range so far. Intraday volume is suggesting it could be wider today. Short term indicators look ripe for buying and the bulls stepped up on a 5min setup at 1424 in the futures (SPX 1430). They are attempting to grind it back up here but there appears to be a lot of sellers lined up on the offer.

1432ish (SPX 1438ish) is a level I'm keeping an eye on... it's likely to be where the bears try to keep a lid on things if the bulls keep pushing. Intermediate term indicators still have room for selling, so I'm trying to keep that in mind in case we make another move lower into the afternoon.

Knives everywhere

Plenty of falling knives.  Thanks, I'll pass.

I know we don't have any rookie bloggers here at Algo Fighters but just in case we have some lurkers who are tempted ..... Don't do it.  The worst think that can happen is you successfully catch one with no harm and make a big trade.  Why do I say that?  Because you'll be tempted to do it again and again and again .... Wait for the knife to stick in the hard surface we call support.