As we are creeping above SPX 1350 it's yet again time to sink our teeth into some of my infamous low-carb-high-protein chart medley:
Let's start short term. As we painted new highs today tomorrow's net-lines sell level will advance to 1327.25. As long as we hover above that the longs should be okay. If we drop below that mark then we may see some follow through - which would be that little retail schmucks shake out I have been proposing. Again, I have adopted the net-lines concept from Chris Carolan - friend of the blog and one of my favorite financial analysts.
Since some folks asked me about Mr. VIX - so I thought I should clarify whether or not we in fact painted an equities sell signal the other day. And the answer is (drum rolls...) - no, there was not. Yes, we did get our spike outside the 2.0 BB (actually we got two) - followed by a close inside - followed by oooops a close lower. Sorry folks - we needed a close above the first inside close to get a bonafide VIX sell signal. So the longs yet again cleverly avoided one of my favorite reversal signals.
So the longs yet again cleverly avoided one of my favorite SPX reversal signals. However, all is not well in Equities Paradise - medium term I am seeing conflicting signals, which make me very nervous. Long term however the writing pretty much is on the wall.
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