S&P had a good technical closing today. S&P had some negative days in last 5 sessions which is showing some selling after 3 weeks. Overbought ration is steadily going down since last 6 sessions which showing that market is not pushing stocks prices much higher anymore. We must be seeing congestion and light pullback all over the places. That shows that demand are drying up little bit. In this situation, it is very normal to see weak hands (small inestors/traders) going into cash as they don't want to loose their profits and don't want to end up negative.
That doesn't mean that I am bearish with this market but little pullback in S&P can be helpful here. So far we have seen S&P making breakouts of each congestion area in last 6 weeks.
Big cap seems to be just waiting for something to happen in this market. Looking at their price and volume actions of last week, it looks like they are strong holding up but little supply can make them move fast down.
I am watching key levels here, 1331 and 1365. At those levels we will decide to have higher risk position or not.
I am still looking for low risk long positions here and not trying to catch breakouts here.
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