Monday, July 13, 2009

ES and SPX perspectives

This is options expiry week, so the major fireworks happen on Mon, Tues, Wed. Channel lines and Fib lines are likely support and resistance. Today 2% fireworks (so far) has popped back above the horizontal neckline, but hasn't done a serious pass at the up-sloping neckline on the ES, but has popped through the up-sloping neckline on the $SPX. I tend to think the ES is a little smarter, a little less retail.

Keep your eyes open for any "glowing" government reports. This would be indicating that the interventionists think that they can eliminate a market cycle by short term pumping to "get the bull confidence back". And its best to watch out as the 800 lbs gorilla flails about.



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Insightful and Useful Comment!