Weekend Update

Weekend Update

Well what an interesting OPEX week huh?

Even though we saw a very larger mini flash crash on the market in globex the market recovered quite well.

Take a look at the NYSE McClellan indicator. It hit new highs this week and also pointing in a north direction at the weeks end. The bottom of this chart you will notice that summation is still BULLISH at this stage, which is a buy the dip scenario.

NYSE Chart

Take a look at the 60 minute chart. Even with that big sell off in globex the S&P went down right to very nicely intersected trend lines, and a nice rising support. The stochastics is confirming after this happend, we went into oversold mode, and soon after the market tried to bounce a bit. We are remaining in this channel for now, and we will wait to see if we can hold in this channel next week. 

SPX 60 minute chart

 Even with the mini flash crash you can see how this dip was bought back quite extensively. We smelt bullshit from as we slip slided down, as it was the end of the world date, and this move did not feel right at all. And as you can see, we went down to the 1390 level, investors starting panicking and then it was bought up back in literally minutes.

Such a movement makes us skeptical, especially in opex, and would not be surprised to see holiday reversals (more up coming on low volume) to play out starting some time next week.

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