Summary:
Bearish reversal day since March mostly led to a further pullback.
| TREND | MOMENTUM | EMOTION | COMMENT - Sample for using the trend table. | |
| Long-term | Up | Disbelieve | ||
| Intermediate | Down | Neutral | ||
| Short-term | Up | Neutral | ||
| SPY SETUP | ENTRY DATE | INSTRUCTION | STOP LOSS | Mechanic trading signals for reference only. Back tested since 2002. |
| ST Model | 11/30 L |
*Adjust Stop Loss |
12/03 Low |
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| Reversal Bar | 11/30 L |
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Breakeven |
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| NYMO Sell | *Short tomorrow if Open > Close. |
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| VIX ENV | ||||
| Patterns ect. |
INTERMEDIATE-TERM: BUILDING A TOP
Maintain the “building a top” forecast. For details please see 11/27/2009 Market Recap.
As mentioned in yesterday’s report, the most recent Investor's Intelligence Sentiment Survey shows the 3rd record low number of bearish newsletters. Today, let’s take a look at the sideline money, although not extremely low but at least not like what people have believed: too much money waiting on the sideline or fund managers are worried about their annual performances.
SHORT-TERM: VERY CLOSE TO A TOP
Blue cycles below, look at what had happened since the March, whenever SPY opened with an up gap then closed in red? Plus the black bar I mentioned yesterday on chart 1.1.3 QQQQ Short-term Trading Signals, so very likely, a little bigger pullback is very close.
About tomorrow, After Bell Quick Summary is bearish, but bulls may have a chance, 3.1.0 PowerShares DB US Dollar Index Bullish Fund (UUP Daily), the black bar could mean that dollar would pullback. Anyway, whether up or down tomorrow is not important as I think sell bounce should be the name of the game now.
INTERESTING CHARTS: NONE