Sunday, October 17, 2010

Weekend Update

Not much more to say except that the bull case keeps on dwindling with a growing divergence between the market and the Nasdaq. If Apple's earnings disappoints for the first time in a long while....

The S&P chart is screaming pullback. With tests of the 34 SMA coming 3x in the last week. When an SMA gets tested so often is such a short period of time it generally bodes well for a reversal. With the RSI(5) in overbought territory on the daily chart, this should be a good opportunity to move the charts lower tomorrow in an attempt to test the 1150 area. I would expect much more, but we'll start there.
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