For Tuesday's trading session (or Sunday night), watch Friday's gap for ES. It is still unfilled and my guess is we will come down and close it (1461.50). The day traded in and out of the gap, but the close had a bearish slant to it, ending below 1476.25 on higher down volume.
Overall, the extreme bearish investor intelligence reading portends a rally in September. But that does not mean we won't first get a downdraft, if Tuesday is not able to close SPX above 1480 once again. Should we get that strong September rally, I would sell into it once we get past option expiration week. But don't jump the gun. The SPX inverted head and shoulder is going to be your gauge.
Overall, the extreme bearish investor intelligence reading portends a rally in September. But that does not mean we won't first get a downdraft, if Tuesday is not able to close SPX above 1480 once again. Should we get that strong September rally, I would sell into it once we get past option expiration week. But don't jump the gun. The SPX inverted head and shoulder is going to be your gauge.
This entry was posted
on Sunday, September 02, 2007 at 9/02/2007 12:39:00 PM.
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