Hedge Fund Live's  Instablog

Since I deal with tecnhnical analysis, the technical picture is fuzzy but trying to get clearer in that the 20 day SMA has confirmed a move up through the 50 day SMA.  For the second day in a row, the S&P June futures held these moving averages very nicely.  On a note of interest, yesterdays low was a 1/4 handle higher than todays, 1305.25 and 1305 respectively, and todays close was was a 1/2 handle higher than yesterdays.  You might think this is nitpicking but this market is clearly driven by quants and the computers will read, lower low and higher close, more confusion.

Earnings season will pick up some speed with GOOG tomorrow after the close and lots of big names next week.  Right now the market seems content to play ping pong each day, but clearly there are traders willing to sell each and every rally.  Is this a deseperate attempt by the shorts to not let the market breakout or are these true money managers that feel stocks are overvalued at these levels?

I don’t know the answer but until one side blinks, expect choppy sideways action.

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