Monday, November 29, 2010

Persistent Buyer Shows Up on Each Test of the 50 Day Moving Average

Doesn't take a rocket scientist to see where 'the buyer' is sitting almost every day for the past 2 weeks.  Bears have no game until this level can be broken.  We continue to sit in a range of low 1170s at the bottom and 1200 at the top; this is now a full 2 weeks in 'the range'.  It continues to look like a head and shoulders formation with the right shoulder forming but the wildcard is all the data coming later this week - much of it with the potential to surprise to the upside. 

In theory, the more times you test a level the more apt it is to finally break... but I've seen a lot of theories go out the window in the abnormal market of the past 2 years.

Gaps at S&P 1090 and 1110 continue to sit out there from nearly 3 months ago.

No position


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