Upping the Ante
The rise in all markets on Tuesday was enough to penetrate the resistance we were looking at: 1425-1430 in the S&P 500. So now we are looking for a new turning point in a market that just has become more overbought. The Federal Reserve action had a fleeting effect on Wednesday. One gets the impression it is repetitive and old news, as far as traders are concerned. The immediate rally soon ran into selling.
The low reading on the Arms Index yesterday was offsetting similar readings from 10 days ago and five days ago, so nothing much changed there. However, the 21-day, shown below, and which we looked at two days ago, is even more extreme. That does not bode well for the longer term. I said then "beware." I repeat that caveat....270 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
There’s no substitute for a trading floor to get great ideas, so Jim Cramer created a better one at Real Money and blogs there exclusively. We then added legendary hedge fund manager, Doug Kass, with his exclusive Daily Diary and best investing ideas. Staffed with more than 4 dozen investing pros, money managers, journalists and analysts, Real Money Pro gives you a flood of opinions, analysis and actionable trading advice found nowhere else, and allows you to interact directly with each expert.
Already a Subscriber? Please login.