Trading the SPX

Yesterdays action seemed rather tired to me, the out of lunch rally was almost completely corrected in the last hour. Could we see a reappearance of "turnaround Tuesday" ?
 
Fwiw I show that the gap on the cash is still open 1197.75 - 1197.11 yesterdays higk was 1197.44, I guess it all depends on how significant the filling of such gaps are. Since gaps are often seen as resistance and support, maybe the gap has played its part for now.
 
A frenetic session. Haven't seen one of these for a while.
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What can we take from this session in terms of direction? Probably asking the question to early as we have 45minutes remaining....
 
SOX bears watching here, a strong move through this 200 week sma could be seen to justify a lot of bullish sabre rattling
 
Probably gonna be a bit screwy now coming into the 3 day weekend though, still not sure if I want to play today and tomorrow yet.
 
Joules MM1 said:
RT agree and I think another slight high above 1197 and equivelant in the Dow against divergent indicia would fit nicely. I am keen to see if the Dow moves away from the SPX.
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Interesting, I have seen you talk about this before Joules, will no doubt confuse me a bit. I kinda like my indicies moving in the same direction, puts me off if there is too much divergence
 
Joules MM1 said:
At the bottom of a bear market or phase, the smaller caps take off and diverge in action thus alerting the trader to bullish divergence. That's at the bottom not a top.
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Agreed, not sure about what small caps do or don't do at a top, hadn't thought about it. But agree at the bottom.
As I have discussed on another thread a couple of weeks back I do look at things like the Nasdaq relative performance and the SOX, A couple of weeks back I pointed out the resuregence in the SOX and as a leader for the COMPQ, may be pointing to a shift in sentiment, which we have since seen, coincidence, sure could be. But in keeping with my view, I cannot take any decline seriously until the Nasdaq and the SOX show leadership in that direction. Fortunately, perhaps for me I do not trade on a long enough timeframe to trully put this to the test, intraday it serves me well to pay attention to these relationships.

So to sum up for a concerted move down, resumption of the previous bear trend, I need to see the SOX turn and the Nasdaq and lead the way.

Needles to say I am watching the SOX very closely around this MA
 
The market must have leadership, it is the nature of people, who drive the market, they need a leader, and they will always assign leadership, until we have a viable replacement for the SOX and Nasdaq then the market will always respond when they move forcefully.
 
Very true Joules,and I cannot answer those questions as yet. The German market, I know nothing about. As far as leadership is concerned I will always be on the watch for a leader that the market will follow, we must simply wait until a worthy contender steps up to the plate and stamps his authority.
 
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