Trader Update -data point 16 May 2011-

Trading Environment:

                                                                                                                           

-Long Term Trending Fed- and Foreign net- Liquidity Inflows _ lower Low 'downtick'_ in mid expansion territory

-SPX 500 'BUY' Alert 25 March 2011_C-RSI +3.67

-Leadership stock ratio: +0.12 bullish advantage
-New Lows: 22 < 26 - danger zone < panic zone 50 (+)
                                                                                                                              

Confirming weakness

                                                                                                                            

-Institutional selling action_'uptick' in uptrend

-Short term liquidity trend_'downtick' in negative territory
-NYSE_(= hft-zone)_C-RSI 30 -0.186 strength_neutral NYA-Momentum
-VIX 17.07 > 15.23 support < 20 stress level_long-term resistance 32.70_D/Vol 'uptick'_22 New Lows

-New Highs Trending Indicator: 164 < 180 minimum target
SPX 500 C-RSI 9 < C-RSI 30

                                                                                                                           

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Stocktiming.com recommend:

• negative intraday bias

• Conservative: upside potential < downside risk = 'go to cash' although market may continue higher before a major top

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Today's Session:

• expecting trading > *1344 to *1360 into target *1388 (+)/*1420 upper resistance
• weakness trading Close < *1330

...Strategy: long > *1324 -stop *1316 -target *1378 (+) 

 

...index defends *1329 support with an intraday Low *1331 second time - although upticks remain sluggish and point to an extension of consolidation pattern, an eventual break above *1360 is expected for the index to trafe higher into upper channel resistance *1412 (+) with risk of sudden top forming elevated above *1388

Kind Regards