Finally some action

One dissident in Fed's camp who spoke against QE3 sent the market down 15 points. Despite the sizeable drop market remains bullish on intermediate and long term. On two hours chart SPX crossed both EMA 25 and EMA 50 but is still above SMA 120 and there is no EMAs crossing yet. 

One hour chart didn't help me in the last four months (too many whip-saws) but I look at it from time to time. It's interesting that market found support today exactly at SMA 120.

On daily chart I am looking at the most obvious support levels and these are 1,420 (April's peak) and even most important 1,410 (the four months uptrend line)

Weekly chart shows that the long term remains bullish, with weekly DMI on the positive side and the 2009-2012 rally uptrend line around 1,310.

I am not convinced by today's action. Probably market players used the Fed speech as an excuse for some profit taking. If this is going to be serious we are going to see the market dropping even more for the rest of the week and intermediate time frame turning bearish.

The stocks I picked in previous posts did pretty well, especially CYTX (39% up), HL, XNPT, HOV (all 11-17% up). Among the losers, MCD which climbed 2.3% and I picked it as a stock good for shorting, PCP (1.8% up) on short list as well. The "weekly DMI" stocks also performed pretty well. Maybe I am not as bad as I thought at picking individual stocks :)  Please note that I put these stock on my list 1-2 days before I presented them to you.

babaro