No surprise, the S&P and Nasdaq were down hard overnight, yet the market finds it in its power to snap right back at the open. At this point, we’ve seen it occur 1.2 million times since the March ’09 lows. Yet those of us who are bears, see the pattern, yet we don’t respond to it very well. Quite the axiom of life as a bearish trader (of late). And why is that you say? Perhaps because we have this underlying belief that once we try to capitalize on the pattern, that will be when it no longer works. I’m not sure, but I do know, this hasn’t been the most enjoyable time of trading for me of late with me being skewed to the short side, the market continues to punish those who believe we’ve seen a top in this market.
With that said, I thought I would post an intraday chart of the S&P using 30 minute candles. As you can see, back on the 9th of this month, we broke through the steeper of the two trendlines, but have since formed a new trendline that is a little less steep, but one that has provided some support to the markets over the past two days. What the bears need at this juncture is to push the market below the 1320 level, to see whether or not that will stoke an additional amount of selling from the market.
Here’s the S&P Intraday Chart.
