Finally it is Friday and we get this week behind us and more normal trading to come. Notice this week how there have been long periods of staying at a single price level followed by quick moves up and down as the prices are swept to allow closing of options. It makes it a very difficult week to use indicators since the price action is different than other weeks.
Last night around the world the markets were a moving.
Asia
Asia had a weak open and morning but found enough strength to close stronger and post some gains.
Europe
Eurozone opened flat and has traded back an forth from breakeven to now trading on the highs of the day.
United States
Economic news
none
Breadth Charts
40 DMA % Index
Our charts are losing their momo up here and may start to pull back to pick up more energy to move forward. The NYSE, NAZ and RUT have curled but are still above their 20 DMA making this chart a neutral 0 today.
10 Day High - Low
This chart came the closest to putting in a bullish score with the NYSE very close to passing its day minus 5 bar. But close isn't good enough and our chart today moves to neutral.
52 Week New Highs
Joining the pack today 52 Week new highs did all they needed to do to also stay neutral.
Conclusion
| Chart | Score |
| 40 DMA % Index | 0 |
| 10 Day High - Low | 0 |
| 52 Week New Highs | 0 |
| Total | 0 |
The charts have slowly drifted from bullish to neutral here but of course what they have been isn't as important as what they will become. We talked about the most likely possibility for yesterday was an NR7 day which we did. I don't think we are done with that 1170 SPX top yet as we need to visit it again to test it for resistance. Maybe even three times but a larger pullback and a 1 to 2% close are needed before we retest.
$SPX
The most likely scenario today is another range bound day between the lows of two days ago and the top. A breakout of 1170 could give us another couple days of upward movement on lower breadth which is certainly possible but if we are topping from the latest thrust we should move sideways for a few days before putting in a correction and then moving to higher ground.
My trading plan will be to short the 1170 area and look to buy 1160 or 1153, which ever sets up for a good long back to the top. 1146 is a full 2% below 1170. That 2% range is our chop zone if we are at a top similar to the other tops in this rally.
A breakout of 1170 should be treated as suspect here.
Bull Plan. Breakout of 1170 and close above there.
Bears Plan: If we hit 1170 full force raid on push down to below 1160 and close on the lows.
Good luck .. Hope to see you in the room http://ttthedge.acrobat.com/traders
Marlin
