SPX made a new high yesterday and closed at 2011.36, only 0.13 over the daily upper band which closed the day at 2011.23. The bears had plenty of time to knock the market down after a new all time high was made in the morning, and failed to do so. The odds that we are starting an upper band ride on SPX improved sharply yesterday.
It’s a struggle to remain objective at a time like this because the last couple of years have conditioned us all to dismiss any bear case at the first sign of trouble, and I’m struggling not to just do that here. The odds of a bullish resolution here are definitely improving, but that’s not a done deal yet, and the stats from my SPX daily RSI5 / NYMO sell signal particularly are warning that we could still see a bearish resolution here, though if we are to see that we would need to see some significant weakness today or at latest on Monday. (more…)
Our friends over at ZH have been touting the fact that a “death cross” is looming with the Russell 2000. Well………….kind of.
What they seem to be highlighting is the fact that the simple moving average is about to do a crossover, which it hasn’t done since the last meaningful market fall three painful years ago.
One of the rounded tops that has been oh-so-slow to break down has been Pier One, but today got things cooking. I have no earthly idea what compelled people to bid this thing up over 21,000% – – yes, twenty-one-thousand percent – – from the 2009 bottom to the recent peak, but it’s starting to unravel: