Monday, June 7, 2010

Bulls are losing the battle

After managing to keep S&P500 in the 1070-1100 for a couple of weeks bulls conceded defeat today by allowing the index to slip bellow the February low, 1055. Sure on the way down there are many other level that could function as support (1,040, 1,025) but for now bears are in total control on every single time frame. There is a good volume at 1045 in the last 4 months which also coincides with the intra-day low seen two weeks ago. That may be bulls last chance to try something on short term but to really turn the table in their favor they need to perform miracles.

Even worse, NASDAQ, the best looking US index slipped bellow SMA200 as well.

If you don't want to go short at least stay in cash. I lost a little bit on some speculative bets on WLT who looked very promising a couple of weeks ago but gave the sell signal only one week later and I've got whip-sawed. That's what happens when you try to be smart and catch the "bottom" (for once in your life) before S&P500 gives you the buy signal.


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