Todd Harrison: The Stock Market Is Waiting to Exhale

By Todd Harrison  FEB 26, 2014 10:20 AM

The bulls and bears battle for technical control of the tape.


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The Hump Day cometh as we fire up our systems to find more of the same: The world of Wall Street is waiting to exhale.

As the bulls knock, knock, knock on heaven's door -- also known as S&P (INDEXSP:.INX) 1850 in less colorful terms -- the ability to clear that hurdle will go a long way in providing the near-term direction for the next leg for the tape.

A few observations on this technical toggle:

1. Given the collective focus -- and everyone is watching this -- we must be careful of false signals, at least initially, as the market tends to pave a path of maximum frustration.

2. Conventional wisdom is that we're going to bust through to the upside and there are likely traders anticipating the breakout -- and holding exposure to sell into it.

3. Sideways action (under the right shoulder) would keep the pattern in tact and create symmetry as far as the chart pattern is concerned, as long as S&P 1820 (1800) holds.

4. Technical analysis is one metric, albeit a metric that traders defer to in the absence of clarity. In other words, if all is quiet on the fundamental front and the structural landscape is status quo, folks will follow the charts, which, in turn, will shape the final metric, psychology.

We should view this technical catalyst for what it is -- a guideline, not a given -- and listen to what it is telling us (a measured move toward S&P 1960) with a respectful grain of salt.

Random Thoughts:


Twitter: @todd_harrison

No positions in stocks mentioned.

Todd Harrison is the founder and Chief Executive Officer of Minyanville. Prior to his current role, Mr. Harrison was President and head trader at a $400 million dollar New York-based hedge fund. Todd welcomes your comments and/or feedback at

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