Monday, April 13, 2009

Weekly SPX

With the exception of the two bars indicated below, every other weekly close on the SPX (since last Oct) has treated this blue line as either support or resistance - 870.


The 23.6% retracement level, from the all time high in the S&P down to 666; corresponds to 877


Daily trendlines - resistance between 875-900


The market is up 30% in 26 trading days. I don't have a ton of confidence in market direction nor any interest in taking on additional positions right now. Fundamentals are nonsense right now and TA isn't doing too much better. If we get to SPX 870ish I will consider initiating more shorts or selling OTM call credit spreads on some individual stocks TBD. If GS and friends report better than expected earnings, which of course they will, look to get long FAZ early next week, below 9. By some measures (Bespoke) the S&P hasn't been this overbought since May 2001.

No comments: