The 30-minute chart of SPY (click to enlarge) shows that the strong uptrend that started on 3/17 and took the S&P ETF from 126 to 144 (a bear-wounding 14% pop) has received what might turn out to be a lethal blow yesterday on significant volume. If we break the previous local low of 138 and then start making lower highs and lower lows, then the bear rally theoreticians (and practitioners, yours truly included) will have come out on top, barely, hanging on by their fingernails, but victorious nonetheless. Obviously that's a big if and the shorts have been wrong and bloodied for the past 2 months so we'll have to follow this very closely.
May 22, 2008
Re-enter the Bear
The 30-minute chart of SPY (click to enlarge) shows that the strong uptrend that started on 3/17 and took the S&P ETF from 126 to 144 (a bear-wounding 14% pop) has received what might turn out to be a lethal blow yesterday on significant volume. If we break the previous local low of 138 and then start making lower highs and lower lows, then the bear rally theoreticians (and practitioners, yours truly included) will have come out on top, barely, hanging on by their fingernails, but victorious nonetheless. Obviously that's a big if and the shorts have been wrong and bloodied for the past 2 months so we'll have to follow this very closely.
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