Sunday, February 24, 2013

Nemo's Findings week of 2/24/2013

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O.K. so we got a little rinse on Thursday....which we promptly recaptured 61.8% of it on Friday.  Checking for Chicken Littles.  I mentioned how the Semesterly R1 has been providing support for awhile.  This low did not get back to test it.  For those of you keeping score at home the low on Thursday in SPY, which basically tested the 23.6% retracement from the Dec 31 low to the Tuesday high.  So, IMHO, and we know how they are like a certain bodily orifice and they all stink, we now have reasonable support at the 150 level, in that whole numbers are always areas of support.  That 23.6 level is close enough for government work to the 150 level, and............  the SR1 at 149.48 which looks like the bottom floor of current support.

Also, IWM is also showing significant supports at the Semesterly R1 at 88.80ish, and finnies, by way of the FAS are showing significant support at the Yearly R1 at 140.80ish, with secondary support at the Quarterly R2 around 142.90ish.  Bonds in the TLT have been running in a $2 range since the end of January.  I'm also watching the VXX more closely.  It's showing signs of bottoming...we'll see. more thing for those of you keeping score at home.  Ya' know how they always say Price and Volume are king, and that all indicators are derivatives, yada, yada, yada?  Interesting thing on Thursday, which is not new by the way in these days of algo trading.  

So, there I was, watching the drop on Thursday, looking for clues as to the turn, especially that heralded volume.  SPY...nothin'   IWM...nothin'   FAS...nothin'  Now, I don't have the volume in the chart from Thursday, but trust me, I was looking.  There was no capitulation volume signals at the bottom, but notice the levels at which simultaneously IWM, SPY, and FAS bottomed.  Funny how that works....

The week that was:

The week that is: