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S & P - Intra Day Update. Market Provides Facts For Decisionmaking.

  

Thursday  18 November 2010

  What we knew about the market, coming into today, was that it had
been showing weakness, and we were looking for a place to initiate a
short position, [See S & P - Getting Precariouser And Precariouser,
click on http://bit.ly/aiKQCM, third paragraph]. 

 So far, price has rallied right through the 1193 prior swing high from
25 October, the horizontal line on the chart, below, and it is now
testing the 50% of range area, presently.  What we know is that  the
move up has been strong, so far.  That tells us there is NO reason
to initiate a short position, yet.  That could change in the next 5
minutes or 60 minutes, or not at all.  Until it does change, developing
market activity, a FACT as to how price has moved, this morning,
tells us NOT to act just because a POTENTIAL resistance area is
reached.

 Price ignored the previous swing high, and it also broke the supply
trend line, yet another sign of strength, at least temporarily.  We now
get to watch and see if this early strength is sustained, or if sellers will
eventually enter the market themselves.  If they do not, buyers remain
in control, for now.



S&P 60m 18 Nov 10