What a shock the market looks like it is going to break it's support and they play the Warren Buffet card. They have done this before bring out Buffet to say it's safe to buy stocks. Well played, little early to play the Wild Card but it's your market. I personally think this run-up was on the news the Madoff has a small penis. It left many CEO's at Goldman Sachs feeling even more insecure with their even smaller penises, so instead of buying a sports car they gunned the market to make their PnL (so to speak) larger!
Today is a day when having stops works, I was out once SPX got above 21EMA. Leaving me out of the run-up.
Now SPX has run right against it's 1000 resistance level and short-term on the hourly is looking overbought.
Just as support has become resistance, the resistance is now support. So 990 is now support, but the more times the market touches that 980 level the weaker it becomes. The last two days the market has been up, both days SPX has seen low volume. While the market has rallied the last two days, it is still inside Monday's candle which still favors the bears.
Look at the NYAD line today, it spiked down while the market spiked up.
I exited the bear camp today around the 980's but re-entered around 998. Last time Mr. Buffet came out and told everyone it was safe to buy was Oct 17, the market tanked 2 days later.
Careful playing the Wild Card so early: