A Lot of Brave Talk, Little Brave Action
The S&P 500 has been above the 1370 support area since April 18th.Â This is leading a number of bullish traders to talk some brave talk on CNBC the last few days, talk like “the bull market is ready to take off again, etc” .Â Trading volume does not, however, confirm that they are putting their money on the table.Â As such the 1370 to 1420 trading range holds.Â Any bad news would lead them to run quickly and the 1350 real support sits as a panic low possibility for this trading period.Â On the other hand, bullish investor tendencies point towards a real panic buy scene between 1395 and 1420 on any exciting news.
The Macro picture remains unchanged from our recent posts.
Crude oil may provide the good news for the stock market.Â A look at where average buys on current crude oil trader positions point to 105 as a level where panic selling would set in and push the market down to our 90 dollar objective.
9:57Â AM CDT