Sunday, October 6, 2013

A Test of 200 D-SMA for SPX Is Likely This Week

In Cash as of 9/3/2013

For SPX, 50 D-SMA has been hit 4 times in the last 5 trading days.  So many hits on consecutive days has made that support ripe for a failure, very likely tomorrow.  A close below 50 D-SMA signals a test of PUL, also very likely tomorrow.  A close below PUL makes a test of 200 D-SMA (around 1600) almost inevitable.

Now that both corrupt parties in DC have dug in deep, only a scary market reaction can prevent a default and Big Money is more than happy to deliver, but he first needs to take significant profit in his high beta holdings.

Disclaimer: The views expressed are provided for information purposes only and should not be construed in any way as investment advice or recommendation.  Furthermore, the opinions expressed may change N without notice.