The above chart is a 10-day, 5-minute chart of the SPYs. Notice that from Monday through Thursday we have a rounding bottom. Now we're waiting to see if we have a handle for a cup and saucer formation.
The key level the market needs to break through is 119.
4 comments:
I think there must be residual concern as to the extent the Greeks, French, etc are being honest about their budget and banking concerns.
The market may want to resolve itself technically, but the troubles in Europe are NOT over yet, despite the ban on short selling.
I agree with Bonddad that stocks seem to have bottomed out. The economy seems to be regaining some life; however, I like to see how it reacts to the upcoming austerity program.
I seriously doubt there's any real austerity coming to the US. I think that's what this 2-yr freeze on short-term interest rates is all about. The average maturity of US treasury borrowing is 4-5 years. Bubble Ben is going to squeeze interest expense down even further so they can pretend to cut the budget when they're really not.
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