Thursday, January 3, 2013

Gravity = down

S&P 500 at major resistance

Regular readers know that I primarily follow the Dow Jones Industrial Average, but I also always keep the S&P 500 in my crosscheck because it is the "trader's index."  That being said, the S&P has reached (and bounced off) a major level of resistance at approximately 1465.  See the chart below (the yellow line is resistance):

The daily scores below indicate a market that is overextended to the upside.  

This leads me to the conclusion that tomorrow, in all probability, will be a down day.  However, this is NOT a RumWave sell signal.  If anything, it could be a quick trade of a day or two.  It could lead to a RumWave sell signal but for now bearish trades should be considered a short term gamble.  We never got a good "buy" signal thanks to the legislative events so a majority of my portfolio is still in cash.. patiently waiting for the big wave.

TSP:  G fund

401k / IRA:  Low risk assets for the next little while

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