Erratic action in SPX holds back longs
The SPX is acting erractically and making lots of traders nervous. We had a real down day yesterday and you can see the bottoming tail there and than today we got a surprised gap to the upside. Most of the day markets traded quietly expecting the FOMC meeting and outcome which left the monetary policy unchanged. It is interesting to see if we get a boost later in the week. If there is a boost it usually comes nexct day or so.
The market is hanging there in the new range and precariously. Which means it is riskier to initiate long positions at this point. we are holding back our longs and unwilling to make deeper committments at this time. Because this is the kind of market, that is at the top, and if it breaks loose, it can hurt on the down side a lot. Therefore you may see a lack of momentum here.
GOOG has perhaps bottomed here after creating a sloppy flag like pattern and now reclaimed its 21 day moving average.
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