As mentioned on the 24th (see below), the rally in the
market would need to see the SP500 take out 1360 trend
resistance on Fri. the 25th. The "500" moved up from
the previous 1352 close to 1360 - 62, but lost momentum
then. This triggered a sell signal for a number of chart
watchers. The market sold off sharply over the day
following the failed test. As I have discussed, there
might be no shortage of sell-the-rally players despite
the recent sharp oversold.
Friday's action suggests further weakness at the outset
of the coming week, but you have to be careful not to make
too much of a one day retreat from resistance. Just keep
Friday's action in mind if you are trading.
- 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 !!!