Hola. Long time – no post. Been on a six week work assignment which took me around the globe (more China, India, and Europe local market insights later). I just wanted to get back in some rhythm and get into the market again.
Back in mid-August, I noted a support & resistance zone I’ve been watching. Going back to July-09, this zone has seen multiple events with that day being the latest resistance drop down. [I wrote the following sentence on Mon the 18th:] A few days ago, we broke through to the topside again; so this zone should provide some support in the days & weeks to come. Sure enough, a 2% down day bounces like a POMO superball.
On a related and somewhat conflicting note, I ran the parallelogram chart and it looks like the SP500 has just bumped its head against a long term downtrend line going back to the 07 high, as well as the shorter term uptrend line:
Here it is closer:
Since this time, the price data is bullishly above the cloud; so I’m hesitant to short with any commitment. However, given the loft above most of the MAs and the parallel trend line resistance, I might dabble short a bit if I can find a really overextended name.
On a totally unrelated note, does anyone else think tonight’s pitcher for the SF Giants (Tim Lincecum) looks like a slightly more grown-up version of Mitch Kramer from Dazed and Confused? You be the judge:
