Welcome to opex Friday! Here's the Pattern Recognition map for today from Mike Korell and his ChartsEdge Daily Maps at http://www.chartsedge.com/wp/:
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ChartsEdge Pattern Recognition
Posted: February 19th, 2010 | Author: Mike Korell |
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Folks, between the Olympics, special projects, and this market bucking many expectations about hhow it would manifest the bounce this week - I'm totally beat! But if you took the common swing approach to buy on Tuesday - even at the 1:00 "low" - you are doing all right. Recently the market has been a buy-on-Friday affair as many have noted. But with the 1107 SPX test yesterday and the overly bullish sentiment as measured by SentimenTrader's gauge (which I posted at the UBTNB3 blog that "feeds" over at right), this may not be one of those Fridays.
We've got the late month time frame which is often weak - the mutual fund manager's tine to buy often around the 26th of any month, just a general tendency that's all. The overly hot sentiment. The cyclic lows that Andre Gratian, Jim Curry, and even Ray Merriman, and maybe others. are expecting to be around this corner. As for Terry Laundry - he's pointing out that the SPX needs to get support around 1095. Can't disagree with that!
Tony Caldaro's Objective Elliott Wave counts have a couple or perhaps three versions just allowing for the uncertainty right now about what this market can pull off. But generally expecting some pullback before anything else really big.
For myself I'm looking to see how it all fits together and wondering if and when events like Treasury bonds dropping will shake equities. There are some who think bonds aren't ready to make a big mice down yet - and perhaps they're right if it'll be equities that drop first and put the scare on that pushes bonds up for a couple more weeks - will see.
Since the futures don't always put a lock on the market cash action we can't assume the SPX will lose 1095 support. We kinda think it will ... But it's always good to remain a bit on the edge to have and keep an edge. So we won't get complacent, either way. The dollar poked higher and the euro lower as I expected (and the yen lower as GS expected) - so even there, it's a matter of "what now"?! Either the dollar sinks and equities, oil, gold, and pretty much all else (well probably not bonds) all fly higher. Or the correction gig isn't over yet, and the dollar probes higher than a lot of people want or expect to see.
So careful out there as always - and happy market navigating!
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