Brief commentary for May 13

Folks, it's obvious yesterday's stock market rally was "off the chart" or at least the "bp" map. Readers should still check the ChartsEdge links to see what Mike Korell is saying in adjustments, which might continue during today. It seemed more like Ray Merriman's idea is a speculative rise although I'd have to double-check if that wasn't supposed to come a bit later. And of course Twrry Laundry's daily T Theory updates at his site. See the sites list at right if you aren't already familiar with these resources! They also include Tony Caldaro's OEW updates each evening.

The SPX level of 1182-ish has been looking like a magnet, and we'd already had the ideas of a technically oversold market, plus the one-time possibility of a rise into the May 21 opex time window. So the risks to short positions have been showing, even though the market damage does leave it vulnerable to re-testing last week's lows. Today we'll just have to see if the SPX can tag 1175 or 1182, and if so, what it does afterward. If the dog "catches" the car bumper - what does the dog do then?! LOL

Point being, the indices are facing resistance, so it won't be surprising if they turn down from resistance soon enough. Perhaps they won't retest last week's lows until sometime in June. Between now and opex May 21, we'll need to read the market indicators carefully. Don't forget to check out where "max pain" points starting real soon and definitely next week, for opex, whether for the indices or your favorite trading stocks and ETFs.

So - careful out there .... and, happy market navigating!