Wednesday, July 27, 2011

Not Scary Yet

We wrote a few times about the trend-line/50SMA this morning as the first line of defense (and later as “line in sand”) this morning and lo and behold look where the artillery stepped in:
Right on cue — trend-line/50SMA was defended on $SPY as we’re bouncing from it now :
First daytrader target of 20EMA already met:
When we will get worried?  When market stops doing exactly what it should.    The bounce on previous support at 129.6 again was perfect (and we had telegraphed it for our readers beforehand) and now the trend-line test again is perfect.  Bear markets don’t bounce where you think they will bounce, they go right through.   Until that changes we’re in the bull camp.
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