Since the all time high breakout in May the 21 day ema has acted as end of day support in $SPY and $QQQ. After the 21 day ema support was lost in $IWM in July it has acted as resistance for $IWM. 2014 has been a wider price ranging index up trend than 2013 was and it requires giving positions more room to ‘breathe” and be more conscious of where to set stops. 2014 has remained the year of buy the dip, sell longs into the 70 RSI level, and be very cautious on the short side. All indications are that we are in a new secular bull market. We have gone a long time with out a correction and people have lost a lot of money confusing small pull backs with the beginning of a new bear market. The market favors perma-bulls, buy and holders, and swing traders from the long side. Trade’em well.
