Trader Update -data point 17 May 2011-

Trading Environment:

                                                                                                                           

-Long Term Trending Fed- /Foreign net- Liquidity Inflows _ sidewaystick'_ in mid expansion territory

-SPX 500 'BUY' Alert 25 March 2011_C-RSI +1.68

                                                                                                                              

Confirming weakness

                                                                                                                            

-Institutional selling action_'uptick' in uptrend

-Short term liquidity trend_'downtick' in negative territory_at extreme oversold
-NYSE_(= hft-zone)_C-RSI 30 -1.24 strength_neutral NYA-Momentum
-VIX 18.24 > 15.23 support < 20 stress level_long-term resistance 32.70_D/Vol 'uptick'
-New Lows: 33 > 26 - danger zone < panic zone 50 (+)

-New Highs Trending Indicator: 132 < 180 minimum target
-Leadership stock ratio: -0.01 neutral
SPX 500 C-RSI 9 < C-RSI 30

                                                                                                                           

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Stocktiming.com recommend:

• negative intraday bias_potential attempt to stabilize markets

• 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 *1396 (+)/*1429 upper resistance
• weakness trading Close < *1330

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

...potential attempt to stabilize markets over next two sessions
 
...market needs to shake off the weak trade below *1329 - a Close below *1329 introduces high risk for further downside to test the SPX 500 *1300 range - while a Close at unchanged levels (+) sets the index up for an eventual break above the *1360 level

Kind Regards