I think the S&Ps can be sold here again already, for at least a retracement.
After two strong days up, the S&Ps came into some decent resistance at the close: they are at trendline resistance from the January 9th highs, and are at the 100sma in the 60 minute chart and running into their 20 day moving averages already. Stochastics are pegged at oversold levels on all charts up to the 60 minute timeframe.
Whereas the Nasdaq had a short rest period this morning, putting in a short "handle" on a Cup w/Handle type pattern, the DOW and S&P have not paused for breath yet. Further, there was no volume behind today's move up in any of the three indexes, suggesting we are just making a bear flag in the daily charts, here.
I'm selling the S&Ps tonight, looking for at least a .382 retracement to the area of the hourly 20 period moving averages, or at least 10 points below today's close.
A move up to the 1120 area first is certainly possible, but will require a catalyst that I just don't see out there right now. A pullback now would be more realistic, IMHO, before trying to fill the gap above in the 1120 area. |
