After the SPX fell to 1542 on 4/18, a new, supercharged postive move was started to
add to the decently strong rally in place since 11/12. The sharp trajectory of this new leg up
coupled with the mild erosion of trading volume suggests a blow off move where poorly
disciplined traders flat chase stocks higher as prices are marked up steadily ahead of them.
So, we have a well defined powerful advance which has grown progressively overbought
and more rowdy. Just to give you a feel for how this advance has gone, there is 6 month trend
support all the way down at the 1580 level and longer term cyclical trend support down around
1470. Thus, there could be a correction as large as 12% without a violation of the primary longer
run trend. SPX Daily Chart
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