Mike Paulenoff – MPTrader
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Mike Paulenoff is a 25-year veteran technical strategist with experience at firms including Smith Barney, Harris Upham, and Drexel, Burnham, Lambert. He has been widely quoted and published in CBSMarketWatch, Barron's and Technical Analysis of Stocks & Commodities, among many publications.
He is currently author of MPTrader.com, a real-time diary of his trades and technical analysis of ETFs that track metals, energy commodities, equity indices, international stocks, and other markets. |
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Bulls Fail to Capitalize
05/05/2009
The most interesting technical ³event² of Friday for me was watching the S&P 500 e-mini futures chart violate what I thought was key near-term support at 864.00-863.50 but fail to follow-through to the downside. The bears could press only to 862.50 before the selling dried up. That is one of those ³uh oh² moments technically. Where were the sellers? When they did not appear, I braced myself for an upside explosion to make the new shorts pay a price but guess what? The bulls did not, or could not, generate the explosive upside that I would have expected on the first Friday of a new month.
Yes, I am aware that after Friday morning¹s low at 862.50, the e-Mini S&P staged two separate rallies of 15 and 12 points, respectively, to close the session on a firm note. However, to me the form of the rally juxtaposed against the decline from Wednesday¹s high at 884.50 into Friday¹s low at 862.50 looks corrective. If my perception of the near-term pattern is correct, then the e-SPM will visit 840-838.50 before it sees 885.00. Sunday night and Monday morning will be interesting indeed.
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