| Fear and Greed Statistic: | 2009-05-20 | 2009-05-19 | 2009-05-18 |
|---|---|---|---|
| Sentiment State: | Joy | Greed | Caution |
| Number of Observations: | 83 | 83 | 71 |
| Sentiment Angle (degrees): | 350 | 324 | 284 |
| Sentiment Intensity (0-100%): | 12.4 | 11.5 | 47.8 |
| S&P 500 Index RSI (0-100%): | 44.8 | 74.3 | 79.0 |
| Fear-and-Greed-Ometer Reading (±10): | 3.13 | 4.80 | 2.25 |
| STOCK KEY DRIVERS: State: CONTENTMENT Trend: NEUTRAL/BULL The market had its second end-of-the-day meltdown. Today's excuse was the FOMC minutes that indicated that the Fed did not see as many "green shoots" as the market did. They also indicated that they were prepared to buy more bonds. It is disconcerting that the S&P was unable to hold the 900. There are plenty of bears willing to jump in to declare that this rally has been a fake-out all along. For me, it just looks like we are going to spend time just swinging back and forth over the 900 line, and that this is not an imminent sign of the BEAR returning. I have never seen FOMC minutes fundamentally shift the market, but given that we are in the brave new world of quantitative easing, it may be different this time. Who knows. The key things to watch for are:
STRATEGY: RSI is middling Given that we are just flopping around the range, it is difficult to find a trade. I would just prefer to keep buying on the dips, and blowing it out as we get close to 920. 875 is the key support level that everyone is watching. If we close below there, and sentiment shifts markedly, then I might switch to a BEAR call. Support levels are 875 levels. Resistance levels are 930 levels. Resistance: 910,917,924,930,938,947,963,975,998,1000 Support: 900,891,881,875,866,858,850,843,834,829,819,812,800,796,790,785,780, |
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