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Looking at the S&P you can see that it really held that support (coming from multiple data points) held without any problem. On the other end of that you can see that they rallied right up into the supply zone from about $1770-$1800 and closed it to end the week. I'll be watching if the bears can hold them under that $1800 level and keep the supply coming in or if bulls can push through. Even if bulls can hold above $1760 to consolidate that would still be healthy. Like I said the risk/reward is in favor of the bulls without a doubt on the index, but definitely in individual names. Bonds closed the week with a very large doji candle. I'll be watching for them to break above the high of that to take it higher, or the low to take it lower. Gold is not acting as well as I had hoped to see but there is still a chance to break above that resistance line I have drawn and to take it higher. At the same time bears could over power and break that $1240 slanted trend line I have drawn, so that is what I will be watching in gold next week.
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Looking into the internals, I have added a new one (in the middle). That is the percent of S&P stocks above the 50 SMA and it is good for gauging short term overbought and oversold readings, similar to the McClellan oscillator but I prefer this since it is based on actual price of equities. The percent of stocks above 200 SMA is still really broken and I would really like to see it get back above that horizontal line I have drawn to show some conviction for the buyers. A positive for bulls is that the percent of stocks above 50 SMA is at the bottom of its range and is starting to turn back higher so at least we have that internal in favor for buyers. VIX totally collapsed as well. Bernanke must have let Yellen in on his VIX magic. Anyway, it is coming down fast and showing fear is declining for now. So once again, the risk/reward is in favor of the buyers.
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I'm not going to go through each stock except to say that these are all long ideas, and the symbols of each are in the top left hand corner. It is a lot more obvious when looking at the individual names that the risk/reward is in buyers favor and on top of that a lot of these setups don't look half bad as long as they continue to hold up and perform. As @alphatrends says the market is 'innocent until proven guilty.' Don't the S&P and it's components deserve due process? I think so. If you have any particular questions about certain setups please use the comments to ask and I'd be happy to address that. If you want updates on these setups or new ideas as they come along you can follow me on StockTwits or Twitter at @M5amhan.
Thank you all for reading my posts and for all the follows and interactions, I enjoy doing this.
Trade well,
-Michael
