The VIX is not making new highs on the new SPX lows. Are we starting to see some bullish divergences? OEX closed right at the March lows, not a good sign, we could still see an underthrow.
But SMH (semi-conductor ETF)held the trendline off March lows so bulls are still alive.
Again, watch that NQ 1865 level. QQQQ April gap close is a little further down at 45.27, so we could get some more selling tomorrow.
Overall, the tone is getting very bearish, with articles in the general media suggesting investors go short. This is normally a good contrarian indicator, but picking bottoms is still very dangerous. Just understand that we could see a bear market rally any day, so pay attention to the tape. I'll confess, I'm starting to nibble, but mostly some overnight trades. End of quarter still favors the bears overall.
For SPX, watch the January lows, in particular 1277, with a must hold at 1270. I would not be surprised to see bulls hold this given the extreme pessimism out there.
Gold continues to be an outstanding trading vehicle. Resistance is weekly R1 at 920, support is at 909/910, followed by 907.50 and 903.50. I was lucky to be long before the breakout, but I cashed in this morning. I'll go back in, remember that gold is a trade and treat it as such. Everyone is now on the 150 oil bandwagon, that trade is getting too easy and too crowded. Blow-off top coming?
This entry was posted
on Thursday, June 26, 2008 at 6/26/2008 08:41:00 PM.
You can skip to the end and leave a response.
» Post a Comment