Momentum Seems a Little Tired

Posted on Nov 13 2014 - 3:59am by Sharpe Trade

Just an observation on indices overall.

The Spoos seem to be getting just a bit tired in the short-term.

I would not say that I am now ‘bearish’ on the equity markets.  Not at all.  I would say that the momentum on the S&P 500 as one of the indices seems a bit … fatigued.

The last couple of days, the e-mini S&P 500 as well as the SPX is both respecting the Daily R1 Pivot around 2042.  As well, each retest of that pivotal area near 2040, is just a little bit lower than the last retest.  And this is on the heels of a huge rally, that never even remotely paused after kissing a 10% retracement that the entire universe had been waiting for …

SPX 10 Minute Chart with Pivots

11_12_14_SPX_10 Minute with Pivots

Mind you, the RUT seems ok.  And the QQQ’s are hitting new highs.  I remain bullish at the current time on equity prices, and as full disclosure, I hold a number of stocks in every portfolio I manage, both long term and short term.  I am not really hedged at all on any of these positions.

But I’m just the kind of guy that always looks at how easily I could get at the exit door, should things turn ugly …

That’s all I’m saying …


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