Sunday, December 4, 2011

Trader Update -data point 5 December 2011-

...the SPX 500 extended slightly higher into the heavily fortified *1260 congestion (the 200-dsma current *1265.43) before selling settled the index into the *1244.28 Close (-2) off the 1246.03 Open

...volume sell extended slightly higher

...the VIX bounced off the 200-dsma current *25.34 to close *27.52 - unfortunately still above the *26.00 program selling threshold - on a positive note, the VIX intraday Low *25.29 penetraded the current 200-dsma level a result, although the market trades in the strongest time frame of a year and a 7.39% weekly gain needs to account for a strong positive bias towards the end of the year - the selling on slightly higher volume combined with a VIX above *26.00 and a minus Open/Close result signals waning strength in the short term - below *1244, risks are high for the market to force the index into confirmation drive to challenge the 10 November 2011 Low *1227.70 - potential to extend lower for a challenge of the *1215 support - potential to extend lower for a 50-dsma confirmation challenge current *1210.26 - however, pull backs to above the 50-dsma provide favorable buying opportunities

Kind Regards

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