The following is an excerpt from the May 29, 2012 blog for Decision Point subscribers.
The market opened higher and then fell apparently amid concerns about Spain this time. Prices did recuperate midday so stocks closed near the high for the day.
Stocks: Based upon a 05/15/2012 Thrust/Trend Model neutral signal, our current intermediate-term market posture for the S&P 500 is bullish. The long-term component of the Trend Model is on a buy signal as of 1/5/2012, so our long-term posture is bullish.
Looking at the daily bar chart we see that today’s top hit horizontal resistance before turning back down. Today’s positive price movement was enough to turn the PMO back up. The PMO bottom is in somewhat oversold territory, but not a place that gives me confidence that we have a solid price bottom. Volume was better than the holiday volume of Friday, but it is still weak.
Short-term indicators are now somewhat or mostly overbought.
No comments:
Post a Comment