Got adrenalin? The markets provided it if you didn't already; some views to consider

Bears must be finding the so-called green shoots rather prickly but maybe they get small comfort from SPY "max pain" at 89, according to the Option Pain CBOE (Max-Pain) Calculator from OptionPain.com. Of course it's rather early in the June options cycle to look much at this, but just an early reminder. The overnight futures were showing that the breakout of the consolidation range would be to the upside, but between the ChartsEdge forecasts and other things we're looking at - like the dollar, euro and gold points I discussed earlier, not to mention banking and the financials - there may be some volatility around the corner, with an opportunity to visit that level in SPY. I know Andre's been issuing his daily subscriber updates, and Tony Caldaro's end-of-day update is worth a read at Elliott Wave Lives On, particularly for those interested in how this shapes up in terms of Elliott Wave analysis. Tony mentions that, if the market wants to go on to be more overbought, he's got a pivot at 961, so we'll see - I don't read Tony's comments as saying there's any guarantee. (I don't want to give it away, but I'm pretty sure you'll want to read his update today.) Tony's daily SPX chart is below (this and all his other charts are at his website):


Readers know I typically recommend reading the Monday Morning Outlook at Schaeffer's Research, and this week's article Monday Morning Outlook: 2009 Has Been an Eerie Replay of 2008 So Far is no exception. Somehow I managed not to get that cite posted with a reminder here, even though it now circulates with their free subscription each Sunday. Still worth a read. This one includes some interesting comments about the potential for Treasuries (and the TLT exchange-traded fund) to be a good buy again. On the second page, Rocky White looks at the Baltic Dry Index (BDI) with some quantitative analysis on whether its rise back above its 200-day moving average spells good news for the S&P 500 index as many believe (based on the idea that it signals a growing economy).

I see that Bernie Schaeffer also issued this today: Schaeffer's Media Outtake: Welcome To The Dow (And Watch Your Back) (6/1/2009). He discusses something I've been wanting to point out - that when a stock is added to an index like the Dow Jones Industrial Average (such as upon the demise of GM), it does not necessarily spell a bullish outlook for the stock of the company being added.

Andy Askey posted some big-picture views worth reviewing: Weekend Outlook (6/1/09), and Gold Squaring Out In Bullish Position (6/1/09)(but remember to read his full commentary on that too). He also provided a particular focus on the Dow over the weekend, with Dow Jones Industrials Time Frame Observations (5/30/09). All of these at his PTV-Investing Blog.

Some additional information I always recommend for Mondays: Terry Laundry has issued his T Theory update - his chart is below, and you'll want to listen to his audio commentary explaining it at his T Theory website.