Daily S&P 500 INDEX TRACKER

[ananda77]

Trader Update -data point 18 October 2010-

...the SPX 500 advanced briefly above October 13 High *1184 to the October 19 *1185 Close before getting hammered at todays Open

...the index bounced off the October 14 Low *1167 support initially but upticks appeared sluggish and price action returned to selling the index down to intraday Low *1162 below support

...todays trading suggests, there could be follow through action to the downside with October 12 Low *1156 as a minimum target, with potential to reach down to 6-month trendline support current *1123, if the market is unable to trade back above todays session High *1179

...inflowing long term Fed and Foreign liquidity flows remained in high expansion territory, yesterdays session included, but institutional investors (heavily hedged to the downside) have started to take profit

Kind Regards

[Hoop]

Maybe the American/Europe markets are entering that bear scare event that Shanghai experienced 6 weeks ago before it finally took off.

Quote from my 13th October Post on the Goldilocks and the 3 Bears thread "...So is Shanghai still leading ? ...Well, the other markets seem to in that flat patch that Shanghai has previously experienced (without the bear scare so far..yet to come?)"

[ananda77]

Trader Update -data point 20 October 2010-

…the SPX 500 bounced off right at the weekly 3-month trendline *1159 yesterday (just above the October 12 Low *1156) and today has so far extended the bounce above yesterdays session High *1179 intraday, reclaiming most of this weeks losses

...considering the bullish sentiment, price action is likely to reach beyond October 18 Close *1185 to challenge the April 2010 High *1220

...on the flipside, as index over-extensions in the weekly 3-month and 6-month time frames continue to build, a break-down between upper channel resistance current *1216 and the April 2010 High *1220 would feature the October 12 Low *1156 as a minimum down target
a Close below *1156 would invite follow-through downside action for a test of weekly 6-month trendline support current *1123

...todays Close *1178 very disappointing
as a result, the market appears to approach 'tipping point' in the *2011_*2020 range (potential to reach a new yearly High in the *1230 levels)
25% (+) protective hedge remains in place

Kind Regards

[ananda77]

Trader Update -data point 21 October 2010-

…the SPX 500 managed a new High *1189 above October18 *1186 and sold off ahead of the *1200 Psych level as
institutions continue to sell into this rally

...despite the sell-off, above a Close *1175, the index remains on track to eke out further upside into upper channel resistance current *1216 and the April 2010 High *1220

...on the flipside, as index over-extensions in the weekly 3-month and 6-month time frames continue to build, a break-down between upper channel resistance current *1216 and the April 2010 High *1220 would feature the October 12 Low *1156 as a minimum down target
a Close below *1156 would invite follow-through downside action for a test of weekly 6-month trendline support current *1123

Kind Regards

[ananda77]

...www.stocktiming.com: -data point 22 October-

...Institutional Core Holding -at RS-resistance- still testing after two days of indecisiveness- failure likely followed by 20 to 30 (%) drop

Market Is Facing Major Headwinds

“ All in all it seems to us that the market rally is based on the shaky assumption that the Fed can now solve all the above problems with unproven, non-conventional monetary measures that couldn't be solved by the massive stimulus provided by either conventional monetary or fiscal tools.* With the prospect of QE2 already baked in the cake, we think the market is highly vulnerable in the period ahead “
source: http://comstockfunds.com/default.asp...menugroup=Home

Trader Update -data point 22 October 2010-

...the SPX 500 traded in a narrow range just beneath the new five-month High *1189 from October 21 2010 with downticks unable to inflict any damage to the bullish sentiment currently driving the market
market internals however were mixed to neutral

as a result, the index remains on track to eeke out further upside into upper channel resistance current *1216 and the April 2010 High *1220 with potential to set a new 2010 index High in the *1230 range

...on the flipside, as index over-extensions in the weekly 3-month and 6-month time frames continue to build, a break-down between upper channel resistance current *1216 and the April 2010 High *1220 would feature the October 12 Low *1156 as a minimum down target
a Close below *1156 would invite follow-through downside action for a test of weekly 6-month trendline support current *1123

Kind Regards

[ananda77]

And yet the article makes no mention of the bond bubble? Just trashes the US and global economy ... I smell someone overwieght in bonds.

"Goldman Sachs: At 7% Above The 55-DMA, The Market Has Been More Overstretched Just Once In History, And Other Mispricings"
source:
source: http://www.zerohedge.com/article/gol...tory-and-other

...mind you, its the 5th week in a row that proprietary traders have accumulated equities and with 90% SPX 500-stocks above their 50-day MA, it seems telling that GS now favors the short side as its only logical, they want to pick up more assets for the longer term but just run into a shortage of supply

Kind Regards

[kiora]

And now we have a golden cross ... 1250 by Christmas ...

Oh,So thats what you are talking about Belg

S&P 500 Makes ‘Golden Cross’ Today; Sign Stocks Not Overbought?.Q3 Tailwinds Lift T. Rowe Price’s Profits Near ‘07 PeakInteractive Broker’s Stock Soars After Beating Q3 ExpectationsEmailPrintPermalinkShare:
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By Murray Coleman
Analysts at Bespoke Investment Group are noting that the tech-heavy Nasdaq index yesterday made a ‘golden cross’ formation.

The broader S&P 500 hit one this morning as its 50-day moving average moved to 1122.40, up from 1120.50 on Thursday.

At the same time, the benchmark’s 200-day moving average jumped to 1121.50, up from 1121.40 yesterday.

A so-called ‘golden cross’ is generally considered a bullish sign that rallies still have legs.

The formation takes place when the shorter-term 50-day moving average passes the longer-term 200-day moving average.

While cautioning investors against making investment decisions solely based on such technical chart patterns, Bespoke co-founder Paul Hickey says that a golden cross is interesting in terms of concerns that stocks are overbought.

“The reality is that if you look back at history, when you see these types of formations the market typically has continued to do better,” he said in an interview.

Another point to keep in mind, says Hickey — the Nasdaq tends to be more reliable when studying golden crosses over time.

“It’s a more volatile index, but technicians tend to follow it more when you get a golden cross,” he said.

The SPDR S&P 500 (SPY) is up 0.14%, or 17 cents, to $118.30 per share at 11:03 a.m. eastern time.

The PowerShares QQQ (QQQQ) was ahead by 0.53%, or 27 cents, to $51.56 per share.

SPY had gained 10.3% in the past three months heading into Friday while QQQQ had returned 14.9% during that same period, according to Morningstar.

[ananda77]

Trader Update -data point 26 October 2010-

...the SPX 500 recovered from early losses and further upside is possible near term amidst market internals today showing a bearish leaning

...the index remains on track into upper brickwall resistance current *1217 and the April 2010 High *1220 with potential to set a new 2010 index High in the *1230 range

...on the flipside, as index over-extensions in the weekly 3-month and 6-month time frames continue to build, a break-down between upper channel resistance current *1217 and the April 2010 High *1220 would feature the October 12 Low *1156 as a minimum down target

…a Close below *1156 would invite follow-through downside action for a test of weekly 6-month trendline support current *1123

Kind Regards

[Phaedrus]

This chart also shows 50 and 200 day Simple moving averages and their associated "Golden Cross" and "Death Cross" signals with the trend ribbon at the bottom of the chart being driven by these crossovers. You can see why this "indicator" is not referred to very much! Note the exquisitely poor timing of the "Death" cross. Anyone acting on that would have been exactly wrong. See how a more active indicator such as the MSI gives far more accurate signals 2 - 3 months earlier.

[COLIN]

Phaedrus: Thanks for the reassuring update, and your enlightening crucifixion of the cruxes. And good to see that you are still with us, as we were beginning to miss your discipling sessions.