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Tuesday, May 12, 2009

Between 875 Support and the 200DMA

I like Michael Ashbaugh he is a very good straightforward technician who provides very dependable support/resistance levels and market outlooks. Every once in a while he provides a free analysis column. Mostly he just shows you what the hand is at any one moment, he rarely makes predictions.

He talks about the S&P500 strong support at 875 and (likely) strong resistance at its 200SMA which I have mentioned a lot and how the market is trading in between.

His article explains things nicely in a nutshell that the SPX is stuck trading between the two for now. Perhaps we have entered another significant consolidation/shakeout period. Sideways grind with whippy moves taking out stops both ways. As Waxie likes to say, don't overtrade things just for the sake of trading.

I thought it was a timely article so I linked it. It pretty much is also how I feel. Kenny too mentioned that 875 will not be broken through the downside so easily. Even I will buy the first bounce at 875.


  1. Makes since if you wind up relabeling (b)with (V) and (c) corrective may wind up at 875 before final push to 200 .....or is that not likely

  2. Could be Kli. I should post it that way as my alternate but that is exactly where [v] would end up at. And 875 would be the pullback spot.

    In the old bear market, bulls would have just rolled over. This P2 is more take-no-prisoners from the bulls. more than the bears.

    The bulls are still on offense no doubt and the bears are eating table scraps

  3. DanE,

    Thanks for your hard work and analysis. I had a quick question on uncle buck. The dollar seems to have crapped its pants in after-hours. It made a low for 2009. Whatever is going on it can't be good for the country. A few companies get a penny a share on forex gains next quarter?

  4. Sorry, the question was whether you had charted the USD and saw any trends/reversals?

  5. Daneric,

    Glad to see you sold some of 401k. I believe the bear market rally is over. I can see the $BKX maybe rallying to its 200day average which it did in Sept. which isn't too far away. I've posted my thoughts on stockstop last week. $NDX made a new intraday low for its move and has closed below its month opening range the past three days, even on days where it meekly tried to rally. Anyway here is a link to an article by Frank Barbera, who I consider to be the best TA guy in the business. I used to watch him when he was the TA guy on the LA business channel in the 90s. Anyway he has a persuasive argument that the turn is near at hand with all of his unique charts:

    Mr. Panic of 1907/2009

  6. can you post in spanish as alternative? tia, ihard time with english, pepe.

  7. DE - since we think alike you may want to read this -

    Thanks for all your excellent work.

  8. THnak you so much for posting yur excellent work

  9. Dan, do you ever chart the $BXD? It's the chicago buy/write index. Very interesting to chart. I have a theory that rally may end at $BXD 157.9 - the previous high from back in january.