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Monday, June 17, 2013

Entering The Neutral Zone

Since I can't annotate the charts, I did put the pivot points on them, which may be better indicators of support and resistance than anything I can come up with. I hope the resolution is ok, it looks fuzzy on my screen. Anyway, we are now back above the P middle pivot, on higher volume, so we do have a bit of a bullish bias here. Despite the fact that we have had generally higher volume up days than down days, CMF continues to drop, so overall we are not seeing accumulation here. Unless we can get above that middle peak from a couple of weeks ago, I would no be doing any buying in here.

 Overall the Nasdaq looks about the same, and has a flattening price relative line, so it is performing equally with the SPX. CMF is also dropping here but has not quite gone negative yet. At this point this is neutral.
The down is neutral to slightly bullish, as the price relative line is slowly dropping. Normally, as long as it its headed down, that means there is no rush to relative safety. However, this did get a pretty good volume spike today. 

Well, the Russell 2000 is now going flat line on price relative, so this is also neutral. I might expect a trend change, but since we haven't really had a trend in the last month, I don't know what it would change to.

The FOMC meets his week, and the announcement is expected Wednesday, at the normal 2pm Eastern time. This one may be important, as traders will be looking for signs that QE is slowing down. I expect the HFT computers to go ape if teh word "taper" appears anywhere in the statement. It probably isn;t a good idea to stand in front of that steam roller.

I will have the new highs update shortly.

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