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Thursday, August 6, 2009

SPX tech update

The SPX is running into a resistance short term around 1000/10 and should see a little pullback the next week. The Real headache will come from the developing intermarket divergence as the NDX is running out of steam around target 1630 and makes the top earlier than the classic stocks. As we are entering a distribution pattern for Aug. we can expect fake reversals as some sentiment indicators have not run up to their full top levels yet. Even tomorrow could be a short term turn trigger but more likely is Monday or Tuesday but we still will have to rush the fools in above 1000 up to 1030-50 in August to finish the top.

1 comment:

Anonymous said...

What makes you so sure that the fools rushing in won't be shorts and those shorts will set the stage for a new leg higher to 1,100 above. Especially with the Fed helping the big banks buy stocks.

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