The Morning Cup of Jo
Come-on Tickles, can't ya be more positive than that?
G'mornin' for Ollie's Diner. Today is going to be an important day for all critters, especially Hoofy & Boo. You've heard many of the professors talk about inflection days and this is, most definitely, going to be one of them. However, a lot transpired Friday that I felt important to cover this wonderful Monday morning before going into all that. As I've always said, "A picture is worth a thousand words," so let's take a look at some graphs.
First is the NYSE composite.
As you can see, on Friday it completed a Double Bottom with a handle with relatively high volume.
Next is the S&P 400 Mid-cap index. This index completed an inverted 2-headed monster, again with relatively high volume.
Third is the S&P 600 Small-cap index. Not only did this index complete a beautiful Cup & Handle pattern on excellent volume, it is also trading at an all-time high - that's right, I said, ALL-TIME HIGH!
So where does that leave us for the big daddy, the SPX? Previously mentioned was an inflection day. This is a day in which the rubber meets the road. As you already know, the SPX has been here many times before and now the big question is, "Is this going to be the time that it actually makes it through?"
The index is currently showing a somewhat downward slanted double bottom with handle. As stated in the last 'Jo,' if this downward trend is busted, there is still some overhead resistance at about 1145-1150.
Well, we know the futures are all looking higher this morning. Nevertheless, that wouldn't stop us from having a higher open and a lower close, which would provide a key reversal day for the market and make Boo very happy. Now, now, now - I'm not trying to burst anyone's bubble, but we have to look at all the possibilities - no matter how small they may be.
On the other hand, we could have a major follow-through day in which the SPX Bust-A-Move and Hoofy finally gets his day in the sun after 10-months of meandering around aimlessly. If this is the case, please DO NOT just go and buy anything that moves. It's earnings season and just because the battle may be over there are still plenty of landmines around.
We'll just have to wait and see.
Until next time...
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