Market Diary

The list consist high option volume trading this morning. Red means more puts are traded than calls.(P/C Ratio more than 100 %)

The list consist high option interest in this morning. Red means more puts are traded than calls.(P/C Ratio more than 100 %)

When I look at the price action of current market, it is showing similar behaviour of 2017. Grinding UP . Look at the chart below. If that is the case, you will see frequent liquidation break like today. Until yesterday, SPX was deviating from 20 SMA around 2 % and now it is marked to 1.5 %. Price touched the mean value (3890) and bounced back. Lets wait and watch the price action.

The list consist high option interest this morning. Red means more puts are traded than calls.(P/C Ratio more than 100 %)

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Major turn dates in 2014

S&P 500 reached  50% of Fibonacci extension right now. Expectation was price will reach into 61.8 % to 1429. Current action seems like, could reverse from 50 %

According to Bradley Siderograph, rest of the year is down turn and from Feb 2013, a rally is coming up !!

Current Range 1360-1390

A flag pattern is showing in Gold Futures. Historically when a bullish move over, gold used to consolidate 250-325 points down. Now gold consolidated into 1927 to 1606 .  Most probably with in couple of weeks time investors move money from equity to gold and bonds again.

Market is bullish, Probably this will be the last bullish action in 2012. Following are the probable targets in SPX,NDX and RUT.

NYMO indicator is in overbought area (87). 60-70  is  ideal reversal area. Market could chop around current area or small pull back is imminent.

Market could be in 1325 -1240 range. Market is in resistance in anticipation of  Europe problem will fix in this weekend. If genie come out of the lamp and fix everything this weekend, then market will be in new range. Otherwise, market will open low on Monday and chop towards to 1240 range in next week. Even if market closed high today, VIX  didn't change much, Bond went UP, Dollar went UP, Euro went Down.This is unusual, due to triple witching.

NYMO indicator reached in reversal area.

SPX Range is in 1345-1255. Now SPX trading middle of the range.  Good support to buy equity is 1260-1270 area of SPX. Expecting more choppy action until then.

1300 could good support for SPX, There will be choppy action in or around 1300. VIX could pullback towards 19-20 level NYMO is in -100 level. In this level NYMO used to reverse, means market could reverse or chop around

A Cup and Handle formation in long term 30 yr Bond. Bond re tested and confirmed that break out is solid and ready to go up. Bond market confirmed today with new high. What that means to equity market.. Equity market is inversely  proportional  to the bond market. If bond market is going up, then equity market will go down and Dollar will go up. The other interesting incident is bond market is higher than 2009 March high. !! That means right now, investor confidence is lower than  March 2009. Most of the  money flows towards bond market. My expectation is market will go down until October 2012 with slight UP movement in mid of  June to July.

Possible ranges are 1400-1350 , if market break 1350,  S&P could free fall 20 points to 1330-1300 range.

ES Futures are breaking down the neck line of H&S pattern today after 3/12/12 break UP. Next support in ES is 1350

SPX Pinned 2011 High.

First Support -1330-1310 Second Support -1250-1240 Third Support -1210 Hopefully S&P will not go beyond that, because of Presidential election year. Expect a Bullish movement from June onwards at least until November.

All indicators and All market experts are saying "Market need a healthy correction" to sustain bullish movement. Probably that's why market is not selling off. Market need to test the "pain threshold"of all the bears before its next move !

SPX is hitting on resistance and shy to move on ! If market break down, 1260 can be the first support and 1220/1210 area will be the next .