Market Diary

Reverse Head and Shoulder start working broke the neckline of 1090 and closed today with 1103. There are possibilities to retest 1090 again, before get back to track towards upside.

Head and Shoulder formation of April last week to May first week dropped the market towards 1230 to 1040 level. now in 1040 level market is forming a reverse Head and shoulder (Bullish Pattern) will push the market in to next level. Note : If Reverse H&S need to valid S&P have to break up 1090 neck line. 1090 acting as resistance right now.

Euro is dragging the market in last couple of days.Today's action in Euro made a double bottom in daily. We can expect possible rally in Euro and that could trigger in to equity market as well.

Summation Index shows bearish (Summation Index is showing long term trend)

NYHL is turning around. Now NYHL is -1 and MACD and William % R is also in up trending.

S&P had tough time to getting through 1090 resistance. it is also upper band of 10 day hourly regression channel. Probably S&P will stay in 1040-1090 sideways, for couple of days !!

In Spider today's action showed a double bottom and a doji. (Bearish Reversal Pattern) Copper buy signal got yesterday . wait for tomorrows action to confirm this reversal

Euro and Copper is leading indicator of S&P 500. Both are seems like reversing to upside.

NYSI Summation index , (It is a long term McClellan Oscillator summation) is in the same spot of last Feb low.. We can expect a rally, in next week. Euro and Copper is also basing and start to reverse. Wait for some news this weekend from Europe !!

NYMO is -136 . It is very oversold area.. This is the time to cover, and look for bounces to short again !!

Dollar Tree and Advance auto parts made new highs today.

It seems like market is basing, and we can see a bullish movement pretty soon. /ES is in the lower band of 1ST std. deviation. While copper is in 2ND std. deviation of the regression channel. Euro is also in lower level of the 1ST std. deviation. Note : All based on weekly 2 yr chart.

NYHL index turning up. When NYHL went to -125 Put/Call ratio was only .83. Now NYHL is -3 and Put/Call ratio is above 1. Fact is more equities made new highs in NYSE than last lows. But people are only ready to buy puts in today's low !!, and professionals are selling puts.

Put call ratio is in 1.13 right now. last time we saw this range is in 2008 March & Sep- Dec. People are buying more protection (scared) and professionals are selling this puts to retailers !! That means we can see a rally soon.

Euro is in a very good support and forming half way through a potential reverse H&S.

While compare the market, Russel 2000 is still leading. 1. Russel 2. Nasdaq 3. S&P 500 4. Dow

Long Term Market sentiment is still bearish . The McClellan Summation Index is a popular market breadth indicator that is ultimately derived from the number of advancing and declining stocks in a given market. It is derived from the McClellan Oscillator by tracking its daily accumulation or "summation". This provides a longer-term view of the McClellan concept. Many people regard it as an excellent indicator of the overall "health" of the market and the market's current trend. It was developed by Sherman and Marian McClellan and first presented in their book, Patterns for Profit (available from McClellan Financial Publications ).

A reverse Head and Shoulder pattern forming SPX hourly. Watch to an Up move in SPX.

Developed by Sherman and Marian McClellan, the McClellan Oscillator is a breadth indicator derived from each day's net advances, the number of advancing issues less the number of declining issues. Subtracting the 39-day exponential moving average from the 19-day exponential moving average of net advances forms the oscillator. Similar to MACD , the McClellan Oscillator is a momentum indicator that is applied to the advance/decline statistics. When the 19-day EMA (shorter moving average) moves above the 39-day (longer moving average) EMA, it signals that advances are gaining the upper hand. Conversely, when the 19-day EMA declines below the 39-day EMA, it signals that declining issues are dominant. As a momentum indicator, the McClellan Oscillator attempts to anticipate positive and negative changes in the AD statistics for market timing. Buy and sell signals are generated as well as overbought and oversold readings. Usually, readings above +100 are considered ov...

VVUS is breaking UP of a yearly resistance. Immediate target -13.84-15.42

$NYHL is in 39. Last Thursday is the first time this index went down after March 9 2009. 200 day MA is in 189. If $NYHL can go over 189 , then there will be a momentum pickup. Else market will be in a choppy mode for some time.

Copper made a base today..

VIX spiked to 41 today..!!

Dollar hit on a resistance today

NYHL is -125, This is first time after March 9 TH of 2009. If we get a follow up sell off, then we are getting into a double dip , or this will be a false alarm, because of today's crazy market action.

Spider closed above the lower linear regression channel.

Boss told me to sell a Million, I sold a Billion, what the heck !! Any way it is going down..

When analyzing Put/Call ratio, as soon as set new lows, market goes down and vise-versa. Put/Call ratio is now .70, In last market low P/C Ratio was .81. ( Feb 2010) This is the time to close all shorts and thinking about to long

Historically VIX is in over extended point right now

VIX is in resistance area (23-25)

$NYHL is 38 right now. When $NYHL approach towards zero line, market used to rally. If $NYHL broke down zero line, will lead change in long term direction of the market

Current Holding

Watch X

NWL is active.

Goldman loosing support.. Next target 135

BP is reversing .. Target -57

POT is breaking UP from the resistance

In 60 days/hourly a bull flag is forming in S&P 500

Amazon showing a Head & Shoulder pattern in 60 days/ hourly chart.

AAPL is in good re entry point. Target 285

Pennant formation in ISRG

FSLR Broke UP the cup and handle Next Target: 163

X is in good support with UP Trending channel. Target- 85

In Last 20 years 2 cycle finished with Bear and Bull. Both Cycle started on Sep/Oct and reversed on March. Bull Market ran for 4-7 years and Bear Market last only for 2 -3 Years. Bear Market used to eat up 70-110 % of the market rally of the Bull Market. Now Who You are ? Perma Bull or Perma Bear :)

Portugal,Greece and Spain Downgraded

Last one year VIX Spiked ( Market sharp pull back) 5 times VIX is getting into a resistance level. Yesterday's action could be a BEAR Trap.