Tuesday, March 22, 2011

Stocks Test Resistance

                                   

As you know I've been somewhat bearish on the stock market (short term) and since my last post the market has  subsequently sold off.  The  stock market is now bouncing and in my opinion is at a low risk selling area.

If you look at the above daily chart of the S&P500, you will notice that we are now at the top of a down sloping channel which also coincides with resistance  from about 14 days ago.  Notice the declining volume on the current bounce in the market.

I'm looking for a retest of last week's low and I feel this is a low risk shoritng opportunity with a protective stop right above the the top of the channel.


2 comments:

Anonymous said...

Thanks Kevin a lot for the update.
Totally agree and I'm shorting US and Japan equities (since day before yesterday) to hedge India long position that I have for a week or so. IMHO, India and emerging markets bottomed or are bottoming now.
BTW, are you trading UNG? I got out near 11.11 after a nice bounce up and the markets don't let me in back since!
Good luck,
Jack

Anonymous said...

Kevin,
stocks broke your upper line. Did you exit your trade?
I was stopped from one short position, but 2 more are still in play. I'm counting on a dip but not sure magnitude.
Jack

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