A print at 119^02 is needed by no later than Thursday to sustain the rally’s momentum. That would refresh the bullish impulse on the hourly chart — a key requirement for any rally that is going to develop “legs”.
From the monthly archives:
July 2009
A Hidden Pivot at 959.90 is still my minimum upside target for the near term, but a pullback to 945.10 Tuesday night can be bought with a stop-loss as tight as three ticks. If it’s hit, look for the selling to continue to exactly 940.30 (which also can be bottom-fished, stop 939.90). _______ UPDATE (1:08 a.m.): The action has turned too sloppy to read, other than on the very lesser charts. My hunch is that tonight’s gratuitous spasms will be replicated on a larger scale as the day wears on.
The E-Mini S&P poked its snout above June’s peaks yesterday, daring bears to stand firm. For our part, we’d prefer to step aside while the futures make their way toward 998.50, a Hidden Pivot from the weekly chart that will serve as a minimum upside objective for the near term. Please note that that would fall a smidgen shy of the 1002.25 print (see inset) we’d said was needed to refresh the bullish trend on the longer-term charts.
Rick Ackerman gives his views on the continuation of the rising conventional stock market in this concluding segment of The Korelin Report. Click here for audio.
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The futures will need to pop above a midpoint resistance at 117^08 to “actualize” the potential of yesterday’s thrust. Thereafter, a Hidden Pivot at 117^28 would be the minimum upside objective.
The 173.10 target given here earlier is still viable, so keep it in mind if you have a hankering to short this little sonofabitch. I’d suggest a stop-loss no wider than 22 cents.
The futures look bound for a minimum 14.015, but you might look for a tightly stopped buying opportunity on a pullback to 13.540, since that’s the midpoint pivot associated with the target. You could also buy a camouflaged entry on the first abc uptrend that occurs after 13.540 is touched.
A Hidden Pivot at 78.49 can serve as a minimum downside objective for the near term, and a close below it would be quite bearish.
Fed Throttles Back, Having Achieved Little
by Rick Ackerman on July 22, 2009 12:01 am GMT · 3 comments
The stock market carved out yet another bowl-shaped formation on the intraday charts yesterday, making everyone who bought the dip a lucky winner. Stocks have swooned in four of the last five sessions and closed higher for six consecutive days, but yesterday’s swoon was a little more dramatic than the others. Some attributed the selloff portion of the day to mounting concerns that President Obama’s tax proposals will soak not only the “rich,” but the middle class. Whatever misgivings investors may have had about this were » Read the full article