Spoos Back At Resistance
Very interesting session thus far – the spoos opened lower but reversed almost immediately and have since been pumping higher without taking as much as a breather. Judging by the Zero Lite accompanying momentum/participation has been minimal. It’s possible that this is just a counter snap but I think the final hour before the bell will provide us with a few more hints.
As I am typing this the spoos have approached an inflection point which cannot be breached if the bears want to get a bit more play next week. We ran up all the way to that NLSL and are now pushing sideways. I would be short here with a stop right above that NLSL. Next best resistance is that NLBL at 1414.25. If you are taking a short position here and we close below that NLSL today then I strongly suggest you watch the spoos starting Sunday night – for obvious reasons.
VIX reversed at its 20-day (2.0) SMA today – we should always expect resistance there and the bears will have to conquer this one if they want to see further downside (in equities). In the past three months we have only spent eight sessions above that SMA, which in itself speaks the to the strength of the medium/long term trend.
Ole’ bucky retested its 100-day SMA and immediately dropped back. Great entry if you managed to catch it. Unfortunately I was plagued by technical issues all day and did not have a chance to send out an alert. In any case, what’s important here is that SMA which will be the our Maginot line going forward. If not breached post haste (i.e. in the next two sessions) then I am afraid further weakness awaits and we may drop all the way back to 79. And that does not bode well for my exchange rate here in Spain.
A few more setups for you subs and then let’s call it a week. Please step into my lair:
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This entry was posted on Friday, August 24th, 2012 at 2:30 pm. Both comments and pings are currently closed.