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non-Epic Fail

May 20th, 2009 at 4:23pm · 2 Comments

Price couldn’t close over the 911.25 daily net-line buy level, which is a negative. They did not however get under the 897.25 net-line sell on the 135 minute chart. But they have one more chance, as that line is active for one more bar tomorrow, ergo watch the price at 11:45 AM ET to see if that signal occurs. There’s a new daily net-line sell level at 875.25 and support on the lower 60 channel comes in at 890 (and rising), should we establish a downtrend tomorrow. Methinks the market is beginning to be colored with a bearish cast about it.

click chart to enlarge

click chart to enlarge

click chart to enlarge

Tags: General Market Commentary · S&P 500

2 responses so far ↓

  • 1 LovesBeta // May 20, 2009 at 6:49 pm

    Thanks Chris for updates. Last Friday before the close, I covered my shorts. Looking to reenter with options instead this time for leverage. But so far, the bulls are not giving in too much. But the price action on the burst ups, seem to hit resistance and feel weaker. And it also shows in the indicators. I almost rentered today, but price action looked too technical/kind of manufactured. I am goring to wait to see how this paint job goes as well. On the side note, it seems Federal Reserve expanded their off balance sheet accounts by 9T. Apparently no one knows where it came from and where it went :-) ).

    Video of Grayson asking about it:
    http://www.youtube.com/watch?v=PXlxBeAvsB8

  • 2 tobject // May 20, 2009 at 8:21 pm

    Have we topped? Elliott Wave Forkology May 20th update
    Ok, let’s gather evidence one more time and see if we indeed have topped

    1. $NYSI Summation index rolled over. Since 2007 top it was a very good(a bit delayed) indicator of a top. Not so much before 2007 though – 2nd lower top was needed to indicate a top.

    2. $TPC (CBOE Total Put/Call Ratio) has broken an uptrend + had huge divergence since late March. Yes, we know – never trade on sentiment alone.

    3. $BPSPX looks like rolled over. I prefer to see a sharper peak at the top as at previous tops so I’m a bit conflicted here. So MAYBE

    4. $NYMO rolled over, that is for sure

    5. Our proprietary Market Structure Indicator alerted us what top on May 8th was very similar in structure with May 19th, 2008 top.

    Many readers remember earlier in 2009 we said 2009 will look similar in many ways to 2008, so there is also a nice 11 days symmetry with 2008:

    Lows: Mar 17, 2008 – Mar 6, 2009 17-6=11

    Highs: May 19, 2008 – May 8, 2009 19-8=11

    Smells like a top, looks like a top, quacks like a top
    WHAT ELSE ARE WE MISSING?
    Send us any more evidence “for” or “against” a top
    http://forkoholic.spaces.live.com

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