Doodled Megaphone

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Yesterday morning SPX gapped over the 50 hour MA at 1843, double-bottom resistance at 1844, and the 50 DMA and falling channel resistance at 1847. Those held as support for the rest of the day and the opening gap didn’t fill, so as long as they hold as support this morning the next step is to proceed towards the double-bottom target at 1873, in effect a test of the last rally high at 1872.53. SPX 60min chart:

140417 SPX 60min Double Bottom Playing Out


How Times Change

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I’m a big fan of Silicon Valley history. Even though I only live a few miles from where the Byte Shop was originally located in 1976, I had never bothered looking up its address. For those who don’t know, the Byte Shop was pretty much the first personal computer store anywhere, and they were the first buyer of Apple products (specifically, 50 Apple I motherboards). Here’s what it looked like:

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GM’s Head and Shoulders

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A reader wrote me this morning asking if the head and shoulders on General Motors was rendered moot due to its violation of the neckline (see green circle). I don’t think it has. What I’m watching as the neckline is the up-sloping trendline, whose violation would only occur in the vicinity of the red circle. I remain short, and today I augmented the position with June $35 puts.