SPX didn't move too much overall but the week was extremely exciting. After a huge drop on Monday, that onset the "sell" signal, bulls recovered the lost ground and managed to finish the week 2 points above last Friday's close. This is the 4th week in a row with SPX finishing more or less at the same level but the last one was the choppiest of all.
This morning bears pushed SPX to the level were the "sell" signal was generated but once again bulls managed to recover nicely. I had a thought, for a split second, to cover my shorts but I resisted knowing that most likely market is going to go down for good relatively soon. I've seen this move before and I know that once the sell signal is generated market is going down no matter a few bullish days in between. As I mentioned last time, only once in the last 4 years I've got a "sell" signal and market moved up a couple of weeks later and advanced another 100 points until the next correction arrived.
The bad news for the bears is that SPX found support in the morning exactly at the rising SMA 120. Also I noticed a small bullish EMAs crossing but again, this happened before so I am not really concerned. I will freak out if I see SPX closing above the previous high (1,530) but until then we are still OK.
Daily chart shows SPX making a new high, but not too convincing, just 2-3 points above. Daily DMI is neutral at the moment.
All the best!
babaro
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