I really haven't had much time to blog over the past several days, but really not much has changed since Tuesday's update, so a link to today's blog has been provided in the Weekly News Letter, in order to get everyone caught up to speed.
If you have not yet signed up for the weekly news letter, you're missing a lot, as I tie together some of the most important market developments, and highlight them in a concise, and easy to understand way. Not everyone has the time to follow me on twitter all day, and even if you could, you're probably not getting the whole picture.
So, to get everyone caught up to speed, and to kill two birds with one stone:
Friday's action, looks like another short covering rally, on the heels of overly bearish sentiment, which had been priced into the options market, earlier in the month.
This is typically what you see when sentiment changes:
1. Extreme bearishness followed by short covering.
2. Extreme bullishness, followed by profit taking.
We did get a nice rally on Friday, but I think we're still looking at a pullback, and possibly even another washout in tech... I gave you the lowdown on that, in Weds update
Things to watch this week.
First thing I noticed with I opened my charting software this morning, is the DOW testing the 50 day moving average. Something to watch
$SPX isn't trading anywhere near the 50 day, but I'd be watching resistance at the previous high of 3762.79, and 3806 - 3812. Same resistance I was pointing at last week.
If we do see another big pullback (shakeout) I'll be looking for support around the 3600 level, and we could even see it pullback as far as a near retest of the recent lows around 3550.
I don't want to give away too much, but I'll probably reveal the chart I'm watching, in next weeks news letter, or as we get closer to Thanksgiving.
Take Care, AA
sss
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