It was a fairly quiet session yesterday with the cash SP500 forming a downtrending price bar. After being turned back by a combination of daily (1345.20) and hourly (1343.78) TDST resistance the market has only drifted lower over the past few sessions. This lackluster decline makes me wonder if the failure at resistance was really the warning that the delta pulse is running out of steam like I thought it was. If so, then last Thursday's high should not be exceeded in the near term.
On a hourly basis the first level of support is at 1324.93. The inability of the bears to get price below this level will make me further question whether the bulls have thrown in the towel. However; those bovine must still prove their case by getting through (in a qualified and confirmed manner) both the supply line (down sloping red dashed line) and TDST resistance on the daily chart.
Bottom Line: The allocation mix meter remains at +50%. I remain quite concerned that the rally high from the 2009 low was made on May 2. As such, I will be watching closely for confirmation that the July 7th high was the top of a counter trend rally.
No comments:
Post a Comment