Monday, July 06, 2009
Head & Shoulders fakeout, and Michael Jackson
Man, what a ride these past few weeks have been! And I've been out of all of it the whole time, trying to make deadlines for the day-job. But looking back on what's going on, it's very tempting to see a head & shoulder's pattern forming in the SPX.
However, a wise trader once said (actually, he won't stop saying it) that the 200 day MA is a force demanding respect for that index. And right now, the 200 MA is marking support, which WAS respected today. There are other lines of support that are being toyed with right now, and we've been flat for weeks. A novice such as myself is probably best to stay away, anyway, and practice from the sidelines. It will be interesting to see if the 200 MA gets retested along with other supports around 885, it looks like a nice pivot point for future reference.
As for the bit about Michael Jackson. I was a fan back in the Thriller and Bad days, so I made a little song in tribute. You can find it, and many of my other creations here. Enjoy.