Caution On The Long Side Is Advised
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Resistance and overhead supply levels are still in play.
"On The 3rd To 4th Day Watch for a Reversal"
Today is Day 4 and the indexes are struggling. The big question is do they sit here and work off the overbought condition of the full stohcastics and reset themselves then another move higher to that 1180 Standard & Poors 500 (CBOE: SPX) mark and the red lines in the other two indexes or is this it. We'll soon find out. In the meantime, one could say we are in the zone though and it's at these levels we will nibble today on a few issues on the short side.
Today is Day 4 and the indexes are struggling. The big question is do they sit here and work off the overbought condition of the full stohcastics and reset themselves then another move higher to that 1180 Standard & Poors 500 (CBOE: SPX) mark and the red lines in the other two indexes or is this it. We'll soon find out. In the meantime, one could say we are in the zone though and it's at these levels we will nibble today on a few issues on the short side.
Even Apple (Nasdaq: AAPL) came up to its uptrendline from underneath, kissed it and has started to pullback today. That's a KODR or Kiss Of Death Retracement pattern so far.
In Summary:
The bottom line is each index is pushing the 50 day average with a resistance level just above that as shown in red on the daily charts. The 60 minute charts are overbought as expected. What we need to see is what happens the next day or so. Will we stall at the 50 day average? (S&P 500) or will we hit the red resistance lines and stall.
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