May 13 2015
Yesterday, the markets forms a long legged doji which shows that market participants are undecided of what to do.
Looking at the 60 min charts of the SPY, we can see the SPY gapped down at the open and quickly cover the gap. However, the resistance above makes it difficult for SPY to move higher. SPY looks like it is forming another rounded top with two topping tails. The bias is to the downside.
The DIA also looks the same stopping at the resistance level and looking like it is forming a rounded top. The gap down yesterday absorbed the demand (support) and if the market drops the next target for DIA will be $177.25.
Looking at AAPL, the stock is finding it difficult to move higher. Support is around $122 and as long as support holds, the stock will likely move higher. A rising 200 MA tells us AAPL is still in a long term uptrend.
May 12 2015
It has been sometime since I wrote something here. Been pretty busy but I guess I must continue to write more frequently. The stock market seems to be meandering between support and resistance making it a choppy environment for longer term traders to make money. Currently it is finding difficulty overcoming the resistance. Im still convinced that we are in a bull market as the rising 200 MA points us to a bull case. Any dips are just buying opportunities.
The 60 min chart of SPY below tells us that the bias on the smaller timeframe is currently bearish. There is support around the hourly 200 MA and the second price support shown below. Any buying would be quite risky at the moment till we see the stock market find support.