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Michael Noonan Edge Trader Plus Michael Noonan is the driving force behind Edge Trader Plus. He has been in the futures business for 30 years, functioning primarily in an individual capacity. He was the research analyst for the largest investment banker in the South, at one time, and he... More
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  • S & P - Rally Into Resistance. Trend Is Still Down 0 comments
    May 13, 2010 8:48 AM

    Thursday  13 May 2010

     Dealing first with the trend, the daily remains down, the hourly is also still
    down but in a rally phase.  We are looking for a turnaround to head lower. 
    The initial resistance around the 1169 high did not hold.  In fact, we went
    short on Tuesday, saw good movement down in overnight trade, but got
    stopped out for a small loss after the day session opening as price
    continued to go higher for the balance of Wednesday.

     Looking at the HOW of this rally, it is not overly impressive.  The ranges for
    Tuesday and Wednesday are progressively smaller, showing an inability or
    an unwillingness for buyers to press their cause.  Also, volume was lighter
    on Tuesday, and even lighter on Wednesday.  The strongest volume effort
    shows up on the down days, so the character of price activity remains

     On the upside, however anemic the rally may appear, sellers are also not
    responding by coming in and pushing price lower.   What we are looking for
    is a sign that price is about to turn and resume the downside.  Developing
    market activity, while up, is acting in a counter trend vein, but as we remind
    everyone, anything can happen, and trends change.  That is not a backdoor escape for taking a stand, but just an acknowledgement that flexibility is
    always required.

    S&P 120m 13 May 10

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