1. The put/call ratio has risen very much and the market has barely moved. This is bearish behavior in my experience, especially when it happens around possible lows. A previous example would be 25-28 June 2010.
In the chart below I marked a similar behavior accompanying the move off the lows in March. The difference is that the market moved a lot back then.
2. The last 30 imnutes of trading, which are very significant for me, negated the after-lunch break-out.
3. Even if, overall the sentiment suggests the market is oversold, there are a lot of bloggers that are bullish from around these levels.
4. The market has just broke through important support around the 50 DMA and the next support area is lower, aound 1300 SPX.
In case I am wrong and the market does not go down, I will reenter after a break-out above 1324 ES.
No comments:
Post a Comment