Tuesday, May 4, 2010

Wow. Second Terrible Tuesday in a Row.

Completely debilitating action the past week for those who are using technical analysis. Support, resistance lines have meant little on this lousy S&P 500. Olivia Newton John failed us and I sold the SPY calls for a loss. I was "joking" yesterday when I said let's watch the S&P slice right back down below the 20 day moving average, causing me yet another loss on the index play.

This makes 5 of the past 6 sessions that we've either jumped over or below the 20 day moving average. But the action is worse than that because much of the moves 'up' have been in premarket the past 5 days, whereas the moves 'down' have been during the market day.

So here we are in a snap to the 50 day moving average. Again, to reiterate if not for all the marking up in premarket we'd be substantially lower. The second interesting point, a week ago Tuesday was only the 3rd day this year I saw a gap down open as the "premarket games" have almost always been in the bulls favor or at worst neutral. This makes 2 gap downs in a week... Terrible Tuesdays to now offset Magical Mondays?

What now... in theory the market bounces off the 50 day moving average at least once.


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