Go Europe! If we gap above 1084 watch that for resistance.. next stop 1094 $SPX

 

Good morning.  We wake up this morning putting together a gap up in the 8 point SPX range almost .8% .  What is the good news? Moody’s downgraded Portugal, but don’t worry..  party on..  In the downgrade Moody’s might have mentioned something like, the situation in Portugal has stabilized.. I think that helped.

 

Earning came out last night for CSX, NVLS and AA. All were upbeat and better than expected top and bottom line.  Alcoa says they have under-forecasted for the rest of the year as needs for their products world wide continues to grow.  Maybe we have under-forecasted too?

Quote of the day:
If you can find something everyone agrees on, it’s wrong. – Mo Udall

 

Chart

Score

 Day-1

Change

40 DPI

+2

+6

-4

52 WNH

+4

+6

-2

10 DHL

+4

+6

-2

Total

+10

+18

-8

Yesterday’s sideways action wiped some points off the breadth charts putting as back 8 points.  I mentioned in the after market posting of the breadth charts that it could be a warning to shave off some longs.  Today’s gap gives you that but you might want to wait to see if we end up in a trend up day.

 

Every chart remains in bull territory, the 40 DPI is close to a crossing again having not made enough head room between the index and the trigger line.   If we can hold today we should be able to gain some more head room and the Zweig Thrust might even trigger.  Could be exciting.

 

$SPX chart:

 

We are still making the higher highs and higher lows, that puts us in and uptrend.  1080 SPX failed on Monday and becomes resistance today.  We might just skip right over it if this pre market rally holds on.   Looks like we could open up near 1088.

image

That would solve the 1080 and 1084 problem temporarily.  We might have to prove their supportiveness by coming back and kissing them.  Above 1084 I have 1094.  If we have a key reversal today the bulls need to hold 1071.  1074 should has be used as resistance.

 

We could have a nice up day today with short squeeze compounded by increased buying from investors making sure they do not miss out of an earnings rally.

 

 

 

Latest Posts for:

52 Week New Highs

10 Day Highs minus Lows

40 DMA % Index

Be the first to comment on "Go Europe! If we gap above 1084 watch that for resistance.. next stop 1094 $SPX"

Leave a comment