It's hard to determine the significance of today's move because it's the day before the Thanksgiving holiday and there was low volume traded. Friday won't be much help either because it will only be a half day for the US markets. With that, I say to take this week with a grain of salt and be ready for anything on Monday.The are a few things that we can discern from the recent price action. From the daily chart below, we can see that the S&P jumped over some overhead resistance today but it ran smack dab into the downward trend line (the yellow line). Also, there are a couple of significant resistance levels that are not too far above the current price level (higher blue lines). The MACD just gave a great buy signal with the bullish crossover (blue circle on the macd) but the RSI and BB width are both flat...kind of conflicting signals.
At this point, we'll just have to wait and see how the market reacts to these various resistance levels. If the price stalls at the yellow line, I'd be looking to short and if it blows through the yellow line without hesitation, it might be time to start buying. Like I always say, only time will tell. I don't try to predict the price moves, I only attempt to properly react to the signals that the market gives.On a different note, I've climbed up to the top 0.2% in the CNBC portfolio challenge. At this point, I've decided that it's not worth wasting too much of my time with the challenge and I'm just going to hold onto what I have and see how it plays out. Unfortunately the challenge has some rules that are very unfavorable to traders like only 10:1 leverage in currency trading (whereas I usually use 50:1) and only being able to buy and sell stocks at the prices for the day's close, no intraday prices.
I hope that you all have a very happy Thanksgiving!!!TLT
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