A vexing week has ended with an extra vexing close. The SPX, rather than moving up smartly
above closing rersistance, has ended a point below it. SPX Daily Chart So, as of today's close,
there is a clear double or secondary top in place. I flag today's wind up as giving a mechanical
sell signal for very short run players, and next week, some money should come off the table
early on as there will be folks who take this tidy run up only to the resistance line as a failure of
the rally. Since mechanical trade signals of this sort are very far from invincible, and since
the market is mildy overbought short term on price momentum, players who remain bullish on this
recent rallly may have to continue to sweat it out.
- Peter Richardson
- Retired chief investment officer and former NYSE firm partner with 50 plus years experience in field as analyst / economist, portfolio manager / trader, and CIO who has superb track record with multi $billion equities and fixed income portfolios. Advanced degrees, CFA. Having done much professional writing as a young guy, I now have a cryptic style. 40 years down on and around The Street confirms: CAVEAT EMPTOR IN SPADES !!!