Monday, August 3, 2009

SPX Breaks and closes above 1000

End of Day wrapup, we had a break and close above 1000 on the SPX, here's a daily chart of the index showing how powerful the uptrend has been. I made a few side notes as seen, higher highs on the RSI, means no bearish divergences all clear there. MACD shows no signs of slowing down, wait for a cross of the two ema's before considering short trade. Unless only for a VST (Very short term). The only thing I see is volume slowing down a little bit, however I don't know if that is just because August is usually a slow month with everyone on vacation, (which I should be come to think of it!) until we get more confirmation stay on the long side, you will thank me.

Studying patterns I can clearly see the biggest reaction sell off in this whole rally off 865 last month has been approximately 10 - 15 points. So I estimate if people start taking profits and bringing this market down, we should not breach the 985 level approximately, if we do 965 should hold and would be a great opportunity to jump in.

I went long today @ 992 on the ES, expecting a test of the 1000 area today, I was right! Sold everything @ 4:15 what a way to start the week!