Just what the doctor ordered
All is well. When you over exert yourself a couple days rest is just what you need to get up and going again. Yesterday's small pullback is just what the doctor ordered after the big day on Monday. Even still, someone was doing a little bargain hunting late in the day. The last hour of trading is sometimes considered the smart money.
Things are shaping up a lot like we saw in the spring low. Back then the 20 day moving average (20 dma) dipped down to the 200 dma before a rally brought it back up. Then an old support area acted as temporary resistance. That's where we are now.
Chart provided courtesy of www.decisionpoint.com
In early May the S&P climbed its way back over the 50 dma (purple) before one more sell off testing the and holding the prior low. I doubt it will play out exactly like that but if we play "what if" we'd see a move up to the 1210 area before dropping back near 1185. That's about a 2% swing from top to bottom. It could be traded but may not be worth the trouble.
The NYSE overbought/oversold indicator is in neutral territory but just like indices, it does show a trend at times. From March to July the indicator made a series of higher highs and higher lows before peaking in July. Since then we've seen lower highs and lower lows.
Chart provided courtesy of www.decisionpoint.com
It is currently neutral, as I said, but it is also hitting that falling down trend resistance area. Let's see if it can break the trend and move up from here.
The dollar was very weak yesterday boosting the I fund almost .50% on the day. Oil was up over $2 a barrel.
** Administrative note:
I've got the Item of the Day back online with a great value today. Thanks!
That's all for today. Currently 40% C, 30% S and 30% I fund. Thanks for reading.
All is well. When you over exert yourself a couple days rest is just what you need to get up and going again. Yesterday's small pullback is just what the doctor ordered after the big day on Monday. Even still, someone was doing a little bargain hunting late in the day. The last hour of trading is sometimes considered the smart money.
Things are shaping up a lot like we saw in the spring low. Back then the 20 day moving average (20 dma) dipped down to the 200 dma before a rally brought it back up. Then an old support area acted as temporary resistance. That's where we are now.
Chart provided courtesy of www.decisionpoint.com
In early May the S&P climbed its way back over the 50 dma (purple) before one more sell off testing the and holding the prior low. I doubt it will play out exactly like that but if we play "what if" we'd see a move up to the 1210 area before dropping back near 1185. That's about a 2% swing from top to bottom. It could be traded but may not be worth the trouble.
The NYSE overbought/oversold indicator is in neutral territory but just like indices, it does show a trend at times. From March to July the indicator made a series of higher highs and higher lows before peaking in July. Since then we've seen lower highs and lower lows.
Chart provided courtesy of www.decisionpoint.com
It is currently neutral, as I said, but it is also hitting that falling down trend resistance area. Let's see if it can break the trend and move up from here.
The dollar was very weak yesterday boosting the I fund almost .50% on the day. Oil was up over $2 a barrel.
** Administrative note:
I've got the Item of the Day back online with a great value today. Thanks!
That's all for today. Currently 40% C, 30% S and 30% I fund. Thanks for reading.
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