Sunday, November 3, 2013
To be bullish or not to be bullish
As the bears tried to get more bear-er (I'm sure this isn't a word) the bulls had other plans. What is interesting when looking at the SPX daily candlestick chart is the the attempt to break our pre-defined level of support at 1757. The trading session on Wednesday and Thursday were starting to look more and more bearish for the markets. However, I did state that unless we break 1757 the bulls are still in control. What I didn't notice was the 10 day moving average that was converging at our 1757 support level. That just made for a better bullish case. Friday session swept the bearish case under the rug for the time being as price broke below support only to close higher in the upper end of the trading range on increased volume. It looked as though any supply (stop losses) that entered the market was overcome by demand pushing prices back above support. Therefore, up is the path of least resistance until something changes. However, should price decisively break support then a trip down to 1700 is certainly not out of the question. More on that level in a future post. For now lets watch and see where this market goes.