Options and Stock Market Technical Chart Analysis for May 29, 2009 by Idan Koren

Hey guys,
Today I give out a daily, weekly and monthly update of what I think is to come. Today's last 10 minute of trading was probably due money managers and institutions wanting to have some of that long exposure to show their clients and tell them that they have not totally missed the 4-5% move up for the month of may. In the past 2.5 weeks we have been trading in a descending triangle formation, and we managed to break out in the last 10 minutes of trading, just to find resistance at another descending resistance which dates back to november and the january 6th high. In the first 5 minutes of the afterhours trading both the ES and the SPY hit the 200 SMA, even though the S&P remains 1 % away from the 200 DMA, there is a chance, that it may never touch it, since it's been touched in the after-hours. We could however, see a small push on the S&P to touch that 200 SMA at 924-926 only to back off later in the week. Note: The Dow Jones 200 SMA is still about 4-5% away though, and that a fakeout slightly higher is possible. The financials today were weak, and kept the market from breaking to new highs, although at around 3:15pm the financials finally caught a bid and helped this market break out of a symmetric triangle on the 10 minute candle scale and then we saw the massive shoot up higher. Today I also look at the VIX, XLF, and explain why i see that we could move lower for the next month or month and a half.

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[u05ikoren]

Well not necessarily, but having been in GS and HBI, I do know that these firms can actually move the markets one way using only a small portion of their money, and then shift it the other way the next day, to create a reversal effect. They have the money to do it, and GS has been at the forefront in the past 3 months.

[unworldlything]

last upward move of the day was just insane!

[u05ikoren]

wasn't it? people always say don't fight the tape.. and in the last 3 moths they were right, though i would feel great shorting at the 200 SMA with a nice stop above it!

[gondjuana]

or rather, the scramble to hide the transactions from the audit will cause the crash ...imho

[uckfayu]

I believe 100%, its absolutely fraudulent, and disgraceful. This market is going to have a huge pullback soon, and if not the game has become 100% rigged.

[gondjuana]

if they get to audit the fed, they'll see they've been manipulating the markets like this since march 6th with the help of GS and JPM ... and the revelation of that will cause another crash

[googacct]

I agree the move up was insane. I was keeping an eye on DOG and saw it falling down like a rock. I decided to grab some because I figure there will be a reaction the other way on Monday. If I had waited about 30 seconds after clicking my buy order I could have gotten for about 40 cents less. Just crazy.

Also, u05ikoren thanks for posting the videos. I have learned a lot from them.

[sirzuke]

we've been consolidating for a good two weeks now! and ready for more upside. no need to call tops again...i've done that before...now I follow the tape.

[rockhardxrocker]

when trading throughout the day, do you recommend using the 10 minute or 5 minute? The moving averages are different for each, so I wonder what most traders are looking at, and thus allowing to affect their behavior.

[rockhardxrocker]

Do you believe in PPT manipulation?