Yes, something is wrong. Market didn't bounce today. I watched the market today. I knew it's going to bounce sometime today. I wait until the low of the day, then I put in a TYH long order at 29.25, I sold half at 29.9 and the other half at 29.7 when the market could not sustain at the last half hour.
And I sold all of the other stocks that I bought two days ago, including HVT, FBN, TLB, FAS because they don't have strength comparing the general index.
I decided to sell all of my holding at the end of today's trading because the market show no vital sign. Today's bounce shows me that the technical bounce is not happening. For a healthy trend, it should resume the trend after the fib level retractment of 38.2%, 50% or 61.8%. Unfortunately, 1096, 1085, 1075 are all failed to act as support.
The short term bearish trend doesn't change unless the 1131.23 high is taken out, provided the 1067.89 low holds up. If 1040.78 breaks then you can easy see the SPX hit 1008 at a minimum which is the 38.2% and probably 943 which is the 50% fib level from 667 low to 1219.80 high.
I really like 1008 and 943 these two support because the 80 weeks moving average is now sitting at 1006 and the projection of last leg down of 179 points [1219.80-1040.78] would equal another leg down to 952, measured by subtracting 179 points from the 1131.23 high.
Now we have these next four support number 1008, 1006, 952, 943. I think these numbers are much valuable than some lottery numbers. Please remember them by heart, they will save you a lot of money in the near future. Remember to plan your trade and trade your trade.
Although the negative news is overwhelming the positive news lately, I don't expect SPX 1040 will crack on June or July. Again, this only purely my own bias to the market, I always suggest observing the market instead of predicting it.
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