NQ weekly S1 held all day and the bullish advance decline volume, reflected in a low TRINNQ (below .50 most of the day) set up the stage for a closing rally. However, the actual advance/decline line was relatively weak, indicating that strength was concentrated in a few key stocks. I'm also noting a flip of the QQQQ 38 strike from above 1 put to call ratio to below 1, which means call resistance is building at 38. Since it is also home to the 10 day ema, expect that zone to be resistance this week. But if bulls can hold on to 37.49, we might have seen a solid short term bottom.
SPX also managed to stay above the 20 month moving average (1227.25), a very important support level for the entire 2003 bull market. The month of June must close above, or the bull market is indeed over.
This entry was posted
on Wednesday, June 14, 2006 at 6:01 PM.
