Friday, January 23, 2009

SPY 3M, Daily - This longer term chart shows a Bear Potato (Gold Spot) with a declining Trend Line and Red MACD.  These are all Bearish indicators that conflict with some of the subsequent observations.
10D, 60m. - A very weak Bull Potato has been technically confirmed on this 60m. chart.  It is so weak that it is hard to trust.  There is little direction shown other than sideways.  I think we need further confirmation on Monday to believe it is valid.
5D, 30m - Very orderly trend line to the upside.  Session started with a gap down and very weak internals which improved during the day.
2D, 15m. - Gold Spots show reversal points with equal bottom and tops on candles.
2D, 5m. - "JA" Play of the day would have resulted in a 1 1/2 point gain for a nice profit.

Usually the move from Bear to Bull or Bull to Bear Potato is more well defined in the crossover.  I am not fully comfortable calling the Bear dead as yet, although the MA did crossover (barely).  No pun intended.
Cold Weather Bear 
SPY 3M. Daily Addendum - This chart has been added since it shows a "New Bear Potato" forming in the Daily Chart (right side of chart).   A trend line has been drawn along the candles which demonstrates the current direction of the market.  A mostly sideway neutral potato is seen over the last six weeks which has now converted into a Bear Potato.  This may be significant and suggests more movement to the downside.  The longer term time frame potato needs to be kept in focus as we deal with the market day to day.  Yesterday (Thursday) was very volatile and the internals were very weak.  The market has been real tricky lately and there a lot of mine fields and booby traps out there.