Sunday, November 4, 2012

Friday’s gap high of 1434 was all the muscle the S&P had from the lows of 1403. A measly 2%. Although the selling did not damage the DeMark daily count, most likely it will revert to the neutral zone prior to election night. A close under SPX 1411.94 on Monday or a close under SPX 1412.16 on Tuesday will confirm that.

Still maintaining a bullish bias but since last Friday, short term positioning risk dictated a portfolio change from 65% back to flat. It does not matter where the buy/sell makers are placed as long as you have them. Position sizing is just as important as market direction. The plan is to dip back to the bullish side as long as the DeMark support levels are respected.

Apple is coming into another buyer temptation zone once more. The conditions are not perfect but it seems close. There are a number of competing DeMark counts that are close to their exhaustive counts so it seems ripe for a counter trend rip. The 560 area is the last support level.





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