An amazing drive up from the open today that has far move than wiped out any globex losses after the horrible NFP number on Friday. Tim Knight of www.slopeofhope.com tweeted out the following image that pretty much sums up the morning so far:
The close on Thursday held the weekly middle band for the fourth straight week. That is still strong support this week and is currently in the 2064 area. SPX weekly chart:
Since I capped the daily chart below the push up from the open has now broken back up over the daily middle band at 2073.l. If that break holds into the close the the bulls are taking back control of the tape here. SPX daily chart:
One thing I always say in an uptrend or a downtrend is that as a strong uptrend should hold the 50 hour MA until it is topping out and a strong downtrend should hold it as resistance until it is bottoming out. The 50 hour MA was at 2068 at the test this morning, and SPX has now broken over 10 handles above that. At the very least this is not a strong downtrend. SPX 60min chart:
SPX is back over the daily middle band and we may be looking at a trend up day here. I would suggest not fighting it and seeing whether SPX can hold this conviction break over the daily middle band at the close. If it can, and this break is not then reversed with a strong punch back below it tomorrow, then I’ll be looking for my triangle resistance target in the 2112 area.
I’m going to be in and out this week as I’m taking some time off. I’ll try and get a short post up every day and normal service will be resuming on Friday.
