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Wednesday, May 20, 2009

05/20/2009 Market Recap: Bearish Reversal Day


The 2nd bearish reversal day, need a follow-through tomorrow to confirm.

Could be a Head and Shoulders Top formed on SPY/QQQQ 15 min chart.

  Trend Momentum Comments - Sample for using the trend table.
Long-term Down   Idea for trading intermediate-term under primary down trend.
Intermediate Down Neutral  
Short-term Up Neutral  

Not much to say, I see no edges for either bulls or bears tomorrow, so my guess is that if tomorrow cannot go up then it should go down. LOL

0.0.2 SPY Short-term Trading Signals, today is the 2nd bearish reversal day since May. The daily chart looks bearish, but since the market’s invincible bullishness has caused a mental damage to me, I’m really not sure if this or any reversal pattern says anything meaningful. Well, at least the day after the 1st bearish reversal day was up really really big. So it’s definitely not the time for bears to celebrate, at least not until a follow-through tomorrow kicks in.


1.0.4 S&P 500 SPDRs (SPY 15 min), 1.1.6 PowerShares QQQ Trust (QQQQ 15 min), looks like a Head and Shoulders Top pattern.


1.3.7 Russell 3000 Dominant Price-Volume Relationships, 1066 stocks price down volume up, not very significant readings but a little bit “bear friendly” which may mean a pullback just started.


3.1.1 PowerShares DB US Dollar Index Bullish Fund (UUP 30 min), RSI oversold on 30 min chart seems accurate recently, so US$ may rebound tomorrow, this is also a little bit “bear friendly”.


By the way, 7.0.7 SPX and VIX Divergence Watch, no higher high on SPX but a lower low is formed on VIX daily chart, this is a divergence, but I’m not sure whether this kind of divergence should be counted as negative or positive.


P.S. Thanks to the referring from VIX and More, the visits to my blog hit new high yesterday. I want to say thanks to him here again and please pay visit to VIX and More, I’m sure you will find lots of valuable posts there. Also I want you to know that in chart 0.0.3 SPX Intermediate-term Trading Signals, the VIX:VXV indicator is originated from VIX and More.



  1. Do you think UNG may be forming an inv H&S?

  2. Could be, but H&S formed only when the neckline is broken, otherwise it's no H&S no matter how it looks like H&S.

  3. Just wanted to say thanks. You're a good chart reader and creater. Highly valuable to the rest of us hacks.

  4. I team up with Schweizer's statement. Thank you Cobra!

  5. Cobra

    Please keep up the great work you do for investors....

    I also feel your readers would want to know about what some are trying to do about the Federal Reserve....

    Please visit and take action....

    Best to all....


  6. Thanks for your nice work.

    I feel this time SPY will go to 740 to build the right shoulder.

  7. This comment has been removed by a blog administrator.



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