Today was a day of more mood swings then a sorority house that is cycling together.
SPX started the morning off bullish, on the heels of the great news that the economy only contracted by 0.7%. High fives all around to everyone. The economy is back! But wait, the Chicago PMI came out and painted a picture that was showing a weakening economy. I thought Berndicke said the recession was over oh ben!
SPX bounced off its support zone at 1046 and climbed back up to 1060 but was met with resistance. One nice thing to see for the bears(myself included) is stair stepping action. This action is allow SPX to walk right down forming a nice triangle. Either way it breaks it should start a new trend. But with a lot of bulls now underwater from 1070, the pressure may be to the downside. The 21 and 50 EMA are add to the resistance. The last hour candle very interesting, but what do you expect on the last day of the quarter.
On the daily chart the 20 Ema held as support again but the more the market moves to test this level the weaker it becomes. SPX on the daily is in a make or break spot, it is coming close to it's larger up trendline and being pressure by it's short-term down trendline.
Again watch which ever breaks.
I mentioned it yesterday that the markets chop is really not providing a edge and to wait for that edge, a break of on the long-term trendline would be an edge.
