I've been writing a lot lately about the importance of this 1060 zone for the S&P 500. And the market has not disappointed, staging an epic, slow-motion struggle right at this critical level.
Yesterday marked the fourth ascent to 1060. So far, the SPX has survived in the rarified air over 1060 for only a few minutes. While there has been enough low-range, drifty upward pressure to get the SPX up to 1060, there hasn't been enough oomph to get it over.
I think this means there aren't enough shorts around to trigger a breakout as their short bets come undone. At least, there aren't enough at the moment. So the natural selling pressure that comes into play at important resistance levels is asserting control.
Of course, all this can change. But it would be helpful for the market if the implied volatility indices weren't hitting multi-year lows. The VXO is again scraping along the bottom of its declining trend line, closing yesterday at a low, low......low......16.84.
Another little interesting dynamic playing out right now concerns the McClellan Oscillator, which is a sophisticated way of tracking the changes in advancing and declining issues. Tom McClellan and his father Sherman continue to provide detailed analysis of their Oscillator in the McClellan Market Report , available to subscribers on our web site every trading day.
The McClellan Oscillator gives tons of great information, and there are many nuances to interpreting it -- but one thing I've found to be valuable are those moments when a clear trend line is broken. This usually signals the initiation of a strong move.
There is now a very clear triangle forming on the McClellan Oscillator, and whichever way that breaks is likely to be the major move. So we'll keep a close eye on that. By the way, Tom McClellan thinks the break is going to come to the downside. Just so you know.
Se não receio o erro é porque estou sempre pronto a corrigi-lo
There's no bull side and no bear side. JUST THE RIGHT SIDE!
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