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TOPIC: Monday January 26, 2015 Market Bias: Bullish

Monday January 26, 2015 Market Bias: Bullish 5 years 1 month ago #10747

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Market Phase: Warning, Market Bias: Bullish
Last Candle Pattern: Bullish Three Outside Up
P&F Pattern: Bullish Column of X's Reversal
S&P 500 Resistance: 2090 2070, Support: 1990
Bullish New Moon

The Socialists won the election in Greece, is anyone surprised? After years of austerity and sacrifice with nothing to show for the people, they have had enough. They have voted their frustration. What does the election mean for Europe and the markets? Probably not a damn thing. Meet the new boss, same as the old boss. However wait and see what happens over the next year, if things actually improve for the people then expect a wave of anti-austerity across Europe and elsewhere. Like all new things, time will tell us the true outcome. Meanwhile I am sure there will be some panic from the European and Greek Capitalists, this will negatively affect the Greek banks and bonds.

A blizzard in the New York City and surrounding areas may affect volume over the next day or so, with tepid volume expect tepid results, we are likely to not see increased volatility and a large drop or rally. There may actually be some institutional buying in the form of end of Month window dressing. Many funds are positioning, and we will see more of that in February in expectation of the March to April rally.

The pundits are calling for the bottom in oil and gasoline, even the Saudis are also. Do they know something we don't? The only thing they know is that is what usually happens this time of year, so they are parroting known seasonality. Talk about climbing out on a limb and taking chances, Their remarks remind me of an old George Carlin routine where he does a weather report “Tonight's report is darkness, followed by scattered light in the early morning hours”. Captain obvious would be so proud. I recommend wait till the charts actually say the bottom is in before going long anything in the energy sector.

The important thing to watch on the charts is to see if the major indices hold the 50 day moving average before going long, or break down to go short. On the SPX the 20 DMA has crossed below the 50 here signifying distribution if the candles fall below as well.
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