Stock Market Viewpoint

Stock Market Viewpoint
Reading the Tea Leaves...

Monday, September 17, 2012

S&P 500 at a Pivot for Tomorrow's Open

Stock Market Technical Analysis Blog
click on image to enlarge 
The market had a slightly down day today as some of the QE3 euphoria started to wear off.  Nonetheless, they were able to keep the squeeze going on AAPL and ran it to 700 in super thin trading after hours.  As for the S&P 500 it is at an important pivot for tomorrow's open.  Looking at the above chart we can see that they used a couple of key moving averages on the 30 minute bars chart to hold the market sideways through the middle of last week right up until the QE3 lift off. 

As the S&P closed today, those same two moving averages have come to a juncture that creates a serious pivot as they will either bounce the red off the green at the open and continue the squeeze or the red will cross down through the green at the open and cause a serious drop.  Also there is a possibility that they will break the pivot in premarket and either open with a gap up or gap down.  A pivot is a pivot, you have to see which way it breaks to play it.


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