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Thursday, September 16, 2010

Thursday, after the close updates!!!

The small CAPS continue to lag behind the larger CAPS, with the Russell closing down 0.72%, while the SPX was only down 0.04% and the DOW up at 0.21%. Not a sign of strength if this continues because it is an indication investors are looking for the safety of large CAPS, instead of the higher risks/rewards that come with playing the small CAPS.
The SPX is really getting squeezed by the Bollinger bands as they continue to tighten, expect a large move here very soon as the SPX breaks out of this consolidation phase, with tomorrow being OPEX, anything can happen, and a large gap open would not be surprising.

After the close, Wow, another boring day where the SPX did not make any higher highs, or lower lows over yesterday's price action(an inside day), day 4 of this consolidation, but tomorrow is OPEX Friday and maybe the SPX will break-out of this sideways triangle, which I have now gone back to my original count from early last week labeling this as the 4th wave. The interesting part will be if we get a failed 5th that does not break above 1131.23 making a major higher high and that respects the trendline of resistance. Not much has changed since yesterday's updates as far as levels to watch.
Breadth, closed at a weak 1.36:1, decliners on low volume, typical of a 4th wave.
The short-term trend does stay at bullish, but the Trend Finder has moved to neutral.
There are a couple of interesting charts I posted earlier this morning in the post below!!!

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