An extremely volatile day! Supposedly Tom DeMark said that only two prices matter, the open and the close; everything else is just emotion. Well, after the dust cleared it can be said that both the open and close were above the short (red) moving average. We also held the recent lows. A successful retest? The bulls most likely think so, but now need to prove it. If yesterday morning's steep fall was just a pullback before prices resume moving higher then the next strong area of resistance on the daily chart is 1310-1316.
Bottom Line: The allocation mix meter is at +50%. My near term scenario assumes that an intermediate term low is in and that a rally will now take us back above the 1344 level. However; I remain quite concerned that the rally high from the 2009 low was made on May 2. As such, any break below the March low of 1249.05 will cause me to lighten my position even further as the allocation meter would fall to +25%.
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