After the last few days the S&P 500 has made some nice moves and is telling me to get back in. You have to know that I have insulated myself from News since May 12th, so I have no idea why the market fell, why it is climbing, and I personally do not think I need that information to clog my mind.
Like I said in Friday’s post, it appeared that we may, key word “may”, have found a bottom. Looking at the 30 minute chart we now have one day that we flatten out and then 3 days of climbing with higher high’s. We also crossed the 5 an 10 day moving averages. So it all looks good for an early entry.
The Daily chart shows that we bounced off the $1261 area and have been steady climbing. We busted through the first Resistance line and held it. We also cross the 5 and 10 day ma on this chart, so all is telling me to make a early entry.
The last chart I will show is the Heikin chart and it now is showing 2 green days which is a trend reversal signal and if we are green in the morning, I will take it as another good signal. The volume also increased today and is a normal sign that buying or selling is taking place. All other indexes, including the Nasdaq, are all turning and agreeing with the S&P. The Dow 30 has actually been leading the way.
This is a very early and very risky entry point but I believe that it will be worth the risk considering that we have seen a 5 –7% correction the last 6 weeks and normally things reverse for a nice little run. It might be a short or long run, but a run it might be. So, be watching the markets closely in the morning and if we are even or up by 11:30am, Mark might be stepping back into the stock market. I will likely take a small step back in the C and S and drop the F.
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