Monday Morning Chartology
While the primary trends in the S&P are firmly in tact, the pin action last week was a bit confusing on a shorter term basis. It broke above the 1364 interim resistance level as well as the upper boundary of a developing pennant formation.
That break was sustained for two day, then the S&P fell back (1) below the 1364 level, negating the break (2) and closed right on the upper boundary of that pennant pattern. Under our time and distance discipline that doesn’t negate the break but it does extend the time element by another day. Let’s see where the S&P finishes today with respect to the pennant’s upper boundary.
GLD continues to meander around the bottom quadrant of an intermediate term trading range. As long as it holds the lower boundary of that trading range, our Portfolios will Hold their positions.
The VIX remains above the lower boundary of its intermediate term trading (and neckline of a developing head and shoulder formation). A break of that boundary would be a plus for stocks.
Update on ‘the best stock market indicator ever’:
Over the weekend, one Spanish province said that it needed a bailout; several others hinted that they weren’t far behind---and Spanish yields soar.. Meanwhile, Italian provinces appear to be lining up to follow Sicily into bankruptcy. And lest we forget, there is talk again of a Greek exit from the euro.
Under the category of ‘they still don’t get it’ (medium):
And it now appears that August 20 is the next critical date for Greece (short):
Thoughts on the war on drugs (medium):
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