THE STOCK & ETF CORNER

SPY : Pop or Drop ?

Two days left to close the week,it's make or break! The S&P 500 is at a crucial juncture: see the chart  (Right here!) .      A "Pop" above the blue line would clearly open the path to S&P 1100 level. On the other hand a "Drop" below the red support line would lead to a fall to S&P 880 in the short term. Keep your eyes open and ready to jump on either SSO or SDS !

SPY : S&P 500 topping ....

I feel confident that SPY(S&P 500) is in a topping process: You can either reduce exposure to SSO(Double long SPY) or add to SDS(Double short SPY) for the short term. However I am still concerned about this current topping action as being the left shoulder of a larger head and shoulder top with a higher high in a few months ! It still too early to tell... For now I'm leaning to some shoppiness action this week leading to an intermediate top at least!

P.S: NO NEW BULL MARKET HERE !

 

Technical analysis:QQQQ,QLD,QID,DIA,DDM,DXD,SPY,SSO,SDS.

As i said in my post yesterday .. the VIX is heading towards complacency !

We are now due for a correction until May 2009: I believe we will retrace 50% of the last rally. The next time to buy will be sometime in May see my Big Picture.

I will leave you with these charts if I "May" !

QQQQ : Powershares QQQ Nasdaq 100 (Long Nasdaq)

QLD : Proshares Ultra QQQ (Double Long Nasdaq)

QID : Proshares Ultra Short QQQ (Double Short Nasdaq)

SPY : SPDR S&P 500 (Long S&P)

SSO : Proshares Ultra S&P 500 (Double Long S&P)

SDS : Proshares Ultra Short S&P 500 (Double Short S&P)

DIA : Diamonds Trust (Long Dow Jones 30)

DDM : Proshares Ultra Dow 30 (Double Long Dow Jones)

DXD : Proshares Ultra Dow 30 (Double Short Dow Jones)

SPY,QQQQ,DIA: Short term overbought.

No rocket science here : the US indices are overbought. All we need now is a decent pullback in order to have healthier advance up to the long term resistance line.

What the Nasdaq,S&P 500, and Dow Jones need right now :

QQQQ : Nasdaq 100 Trust Shares

QLD : Ultra QQQQ (Double Long Nasdaq 100)

SPY : SPDR S&P 500

SSO : Ultra S&P 500 (Double Long)

DIA : Dow Jones Diamonds ETF

DDM : Ultra Dow 30 (Double Long Dow Jones) 

BGU : Triple leveraged Large Cap Bull (Triple Long Russell 1000 Index)