Wednesday, May 19, 2010

Market update AMC 5/19/10

Wrote at Members Site on Sunday:
quick SPY update - first touch of SPY 111.26 on intraday basis will put wave A daily on the map. That might produce very strong intraday/few days bounce (similar to one on February 1st – exactly when wave 4 was "printed" intraday and then gone by higher close)…
Posted by DavidDT at 5/16/2010 08:07:00 PM
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Today SPY's 111.26 and corresponding $SPX's 1110.88 were hit intraday and surely bounce emerged…but definitely not the kind of the bounce I was expecting.  Closing prices are above aforementioned marls for wave A on daily to be put on the map, granted that this is an OpEx week I see no better scenario as move slightly down tomorrow, close below needed levels and burst up on Friday.

Ideal close for $SPX tomorrow would be below candle market with blue arrow and above TDST at around 1105.60


I wish I could say that 10 minutes D-wave (which was quite accurate lately – even counting "flash crash…on closing basis) supports my theory of "below 1110.88 and above 1105.60", but it clearly points to 1070sh as wave 5 destination.


This is NOT an easy market to trade right now – try not to initiate new big positions in any direction until "below 1110.88 and above 1105.60" is resolved.  From my POV there is nothing wrong with 1070 on 10m wave – wave A on daily may be continue down as low as  1056.74 (after today's muted bounce at key level for A I am less inclined to play bounce, but rather to wait for reasonable short entry.  But again – I am trading very lightly due to multitude of events that happened during last few weeks)
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