Friday, January 29, 2010

S&P 1080 is the New 1085

Thus far S&P 1080 has been a brick wall to bears.  I don't see the long term significance of this level but we've now bounced twice off it on an intraday level today, and it's very close to the low of yesterday which was just below 1079.

This is a much shorter time frame than we bother to analyze but for daytraders and such, an intraday chart is their mana.  We can see a "double bottom" formed, so if bulls are going to get their groove on, buying off of an intraday double bottom like this would be the precursor.  I'm not sure how useful it is, because I don't do much intraday charting but I am trying to see both sides and find technical reasons to be hopeful if I had a bull hat on.  It won't change my intermediate view that the S&P 500 appears cooked....

We'll move down the "line in the sand" from 1085 to 1080 for now - let's see how these last 100 minutes of the day play out.  I assume many people would not want to carry risk over the weekend as we've seen so many weak Fridays followed by strong Mondays, but I won't feel confidant until 1078 breaks.  I can see it going either way right now.  Victory seems so close... yet so far away.

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