Tomorrow could be a big day for this crazy market. Why? This is our fourth trip to the 1950 level for the SPX cash. Its also just below the 50 day simple moving average. Yes, I know the SPY closed above the 50 day for the first time this year, but I look at the SPX.
The Dow 30 today also closed 2 pts. above its 50 day ma.
If the bulls want to, they could make a s statement tomorrow. I’m sure there are buy stops at or just above the SPX 195050 zone, and if they wanted to, they could create some panic to the upside. This creepy crawly move higher the last couple of days though has been on very light volume, but that can change in a hurry as shorts get squeezed. If they get squeezed.
If however we don’t see a break above, then I see a hard, dramatic selloff in store.
If you like a good old fashioned W pattern here you go. We’ll see how this all pans out soon.
These OPEC countries make me laugh. Oil looked like it was in a nice rollover pattern today until Venezuela came out and said that a March meeting to discuss production would be cool. This popped oil and stocks…again.
Rumor Pop
The thing is, it was just a rumor, and its the same rumor that we’ve seen two other times in the past. month. Its no secret that Venezuela would like a special meeting in March; they’ve been begging for one for months. But I digress.
It has become a “headline” market to a degree and that can be very tough to trade.
I added SCO (short oil) today, it popped $4 then dropped 10 as the rally appeared. I lowered the stop to 162.
See you in the morning.
Joe