SHORT-TERM: EXPECT PULLBACK AS EARLY AS TOMORROW
- Still expect a pullback, as early as tomorrow.
- Today’s Trading Signals is very important, please take a look because it mentioned that SPY ST Model is yelling for a top now. The model has very good credit for calling a top in the past, so although sounds stupid to call a top now but let’s just don’t neglect it.
- Trading wise, as long as it’s not a sharp pullback, it’s a buy opportunity.
The arguments for the pullback are mostly the same as those mentioned in 04/27 Market Outlook, just some are even more extreme.
SPX closes out of BB top for 3 consecutive days, short at today’s close and cover tomorrow (if SPX closes below BB top), you’ll have 90% chances since year 2003. Remember I said in today’s Trading Signals that short at the close may not be the best entry? Well, the chart below also explains why as 100% chances we’ll see a higher high tomorrow.
T2112 becomes more extreme.
The 3rd reason is for fun only. Have you noticed that the recent patterns are up 3 days then down 1 day? LOL
There’re some other bearish signals, not necessarily mean a pullback tomorrow, but are by no means bull friendly in the short-term.
OEX Put/Call Ratio surge again.
Rydex Traders (we retailers) are way too bullish now.
INTERMEDIATE-TERM: SPX NOW IN 1352 TO 1381 WAVE 5 PRICE TARGET AREA, WATCH FOR POTENTIAL REVERSAL
See 04/27 Market Outlook for more details.
SEASONALITY: BEARISH MONDAY, THURSDAY AND FRIDAY, BULLISH WEDNESDAY
See 04/21 Market Recap for more details.
ACTIVE BULLISH OUTLOOKS:
- 09/27 Market Recap: 9 POMO within 20 trading days means 14%+ up in 3 months.
02/23 Market Recap : Pullback could last 4 weeks, then 02/18 highs will be revisited.
- 03/11 Market Recap: Bullish in 3 to 6 months.
- 04/01 Market Recap: Bullish April.
- 04/21 Market Recap: QQQ weekly Bullish Engulfing is bullish for the next 6 weeks.
ACTIVE BEARISH OUTLOOKS:
03/18 Market Recap : 03/16 lows will be revisited.Failed!
- 04/21 Market Recap: SPX will close below 04/20 close soon.
- 04/27 Market Outlook: IBM down on ER and AMZN up on ER mean lower SPX price in 5 weeks.
HIGHLIGHTS OF THE OTHER ETFS IN MY PUBLIC CHART LIST: