SIRI Daily Thread... Friday, May 24
Let me be first to wish the best to Charles and his wife. I'm sure we all will be happy to know when the newborn arrives and to know momma and baby are okay.
On the stock front, I personally have never attempted to read the tea leaves of the indices by the charting methods we employ with individual equities, but after a report yesterday in a Small Cap news letter I decided to see what we might learn in that approach with the S&P500 Index ($inx). Attached is my first effort.
You can see how consistently this index has tracked between the lower (support) and upper (resistance) trend lines, how it has taken a hard bounce off of the upper trend line which also coincides with the upper BB, and now seems to be in a definite correction. I'll personally be watching, and hoping this slide will soon put on the brakes. I think the 50% Fib retrace somewhere in the range of 1615 will be a critical place to watch. PS. Since I began this note the market has opened and the S&P500 is now at 1642.