Wednesday, May 18, 2011

S&P 500 Has a Crush on 1340

This 1340 level is like a magnet.  After yesterday's late day reversal saved the market from breaking the 50 day moving average support (remember it is the close that is most important versus intraday), every underinvested bull and bear now asks is this the beginning of the next low volume, V shape bounce that makes no sense but keeps happening.  With all the break of momentum names lately I doubt it this time around - this looks more like an oversold bounce as so many of the momo names had fallen so far in a short amount of time - but I could certainly be wrong.  We remain stuck and in choppy conditions - a place to keep position sizes smaller and time frames shorter.  Or go eat popcorn and watch.

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