S&P had a nasty looking reversal today. Almost closed in the same price level as yesterdays closing. I don't like this closing. It seems like there is a big supply above 1294 level. Until S&P digest this supply it will be really hard to setup for another big move to 1350 level. Another possibilities is that if see closing like todays for next couple of days, we may be looking at some down movements.
Big cap stocks is doing horrible, really bad closings. Most gaped up and closed below the opening, which shows big supply came on after the gap up opening and forcefully pushed the price down. It allmost looks like a fabricated move created in the morning and breakout traders limit buy order triggered in the morning. Then supply came back and took their stops out.
Looking at these actions, I am little concern about S&P's next big up move. I am not going to change my mind because of this one day low volume action. But will be watching market very very closely for tomorrows action and go from there...
I am still bullish for now and little concern at the same time.......
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