Submitted by Mark Hanna
Courtesy of MarketMontage. View original post here.
The S&P 500 has now rebounded to Thursday’s close and it is as if the jobs report never happened. Of course a lot of individual names have taken a lot more pain than the index, but it is what it is. So the pattern of buying on the trend line works again, and we have yet another strong 2 day spike if you consider Friday afternoon as a “day” (a solid move off the low intraday). Not quite a sharp of a rally as the first few bounces off this trend line but decent enough. S&P 1565 comes back into play as resistance for now. For those looking for “right shoulders” you’d expect it to get choppy and range bound from here for the next 3-7 days. And no new high. A close over 1570 negates that pattern.
More wacky news – this is the 14th (!) day of consecutive alternative closes on the S&P 500 – green, red, green, red, green, red etc
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Any securities mentioned on this page are not held by the author in his personal portfolio. Securities mentioned may or may not be held by the author in the mutual fund he manages, the Paladin Long Short Fund (PALFX). For a list of the aforementioned fund’s holdings at the end of the prior quarter, visit the Paladin Funds website at http://www.paladinfunds.com/holdings/blog
