Monday, October 24, 2011

The Morning Call- Monday Morning Chartology

The Market


Monday Morning Chartology

The break above not only the 1219 but also the 1230 levels is pronounced. Our time and distance discipline is now operative, although a good deal of the ‘distance’ element of our discipline was achieved on Friday. Any kind of positive performance today will likely move the S&P over our normal ‘distance’ hurdle (circa 1%).

Once again, GLD has challenged the lower boundary of its intermediate term up trend (Thursday) only to recover shortly (Friday). Any dip back below GLD’s lower boundary would be a re-set of our time and distance discipline.

Despite the very strong pin action of Friday, the VIX remained well within the upper zone of its trading range--not good for stocks.