Stock Market Fun! (no?)
| May 16, 2010 | Posted by admin under Day Trading Ideas, Stock Market Analysis, Swing Trading Ideas |
A crazy week for stocks. We saw moves in single days which normally take place in a week. I put out multiple updates this past week simply because not having solid info heading into the next session could mean significant losses or missed opportunities.
For short term traders this was a fun week, but for longer term investors it may have been a more “interesting” time. Thursday provided a bearish signal, which I posted about. Friday saw the confirmation level (early in the session) and a strong down day (down 1.88% on the S&P 500). We are back below the trendline (bearish) but bounced off a support level late in the day Friday.
Support (on the S&P 500) comes in at Friday’s low 1126 but really extends down 1122. A break below this could see 1100 within the week, and given the volatility it could happen quickly. The trend is down on the longer and shorter terms. With the swing high recently put in and the sell off Thursday and Friday, a downtrend line can be put in to gauge pullbacks. As long as those swing highs at 1174 stay in place this is a downtrend.
Support beyond 1122 comes in at 1093, followed by 1066, 1057 and 1044 if needed.
A rise above 1158 would be interesting (meaning I expect further downside before a rise to that level again)… but would be an early sign that there may be a few bulls still in the mix and retest of those swings highs at 1174 could occur.
Best wishes,
Cory Mitchell, CMT
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[...] Last weeks analysis is still in play. At the moment I don’t think there is much reason to be buying this market unless someone is unleveraged and buying for the very long term. Current trend is down and for individual traders there is no point in fighting that. Short-term traders that remain nimble in their position size likely continue to have a field day. [...]