Posting has been a little quiet of late as i continue to prepare for my portfolio management exams. Behind the scenes i also continue to build the rules for my managed portfolio and hope to share with you the back-testing results in the coming months
Despite the marginal new highs in the Dow Jones and S&P indices, you only need to look around the world and see that we topped in April. That's the illusion of the DJ and S&P indices that the world is ok, meanwhile underneath the surface its components are distributed by professionals and by the time the retail trader has caught on, prices have dropped. I like to think of those indices the same way i interpret a CNBC newsreader, whats their agenda. What i have found most interesting is that when i track the action of all the S&P500 components the index behaves differently, weighting you say, i've factored that in too.
What now, ES, found strong support at 2096. The strong accumulation of stocks around this price and time point also signifies higher prices and an oversold bounce into around the 28th and a lower high, with CASH targets of 2112, 2120 likely. Overall im expecting a move down into the mid June time frame with support at 2070-2080.