Wednesday, November 02, 2011
Above is a 60 minute SPY chart with a volume@price overlay. As I've never shaken my belief that charts tell us nothing so fully accurate as price history, I do look at where the market has voted with its collective wallet. It is these places where the inextricable psychological and economic investment shows up--and where breaches of these areas (to the upside or the downside) are likely to elicit a reaction (buy to catch up or Neither pundits nor technical analysis have any dibs on future certitude of market direction. Since my last post, the market seems to be reacting to its current (in)digestion of news out of Europe.
Euphoric, despondent and incredulous are all apt emotions that the market has experienced. Who knows what it will bring today? We are entering a area of important price support (to my eye anyway). Likely to be more chopping as market participants try to digest the Euro stuff and the MF Global debacle. And the MF Global evaporation is a reminder that the so-called smart money, is not so smart (said with schadenfreudic sarcasm).