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  • Why Last Week's Rally Signals More Trouble Ahead for Stocks [View article]
    Logical you and Diva have offered some interesting insights. I use the fundamentals to help me grasp the big picture and a host of technicals to time or implement decisions drawn from the big picture.

    The S&P touched its 200 day MA twice, the second time being the 26th of June and this along with indications that Greece would approve further austerity measures, the EU would release the fifth tranche and some general favorable US releases propelled the market up with the S&P closing at 1339 on Friday.

    The market moves in a progression of higher highs and higher lows and presently it is doing just that. Breakdowns occur, however, when the current series of higher highs and higher lows fail to rise above levels established in prior cycles of swing highs and lows. Looking forward, we can be bullish if the S&P closes above 1347, then 1360 and then 1372.

    The latter is where the market starting breaking down in early May and if we move off 1372 we can be quite bullish until the next shock or swan hits us in the face. Like you I have bearish bias but I have trained myself to trade what I see.
    Jul 3 12:44 PM | 6 Likes Like |Link to Comment
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