Monday, April 8, 2013

Bounce before the trounce

The market bounced back today, much like I expected.  Even with the additional 7 point rally (I had previously stated that the /es should stall at 1555) the market closed right at hourly resistance in the S&P 500 cash index.  Price could attempt to make higher highs for a few hours tomorrow, bumping up against the bottom of the red channel.  However, I wouldn't bet on it.

The equity put/call ratio closed the day at one of the lowest readings we've seen in weeks.  Considering the technical resistance price is against, in the short and long term, this data suggests risk is extremely high.

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