Tuesday, November 6, 2012

The S&P closed just under the 1430 minor resistance area. That push was enough to give the DeMark daily another notch which stands at 4 now.  There is a sufficient cushion at today’s closing level and the 1403 support level so a selloff can be viewed as buying opp vs the support level.

Both the Nasdaq and Russell 2000 are exhibiting similar DeMark TDST support as the S&P. Just like the SPX breaking under 1403 on a close, the same applies for 805.75 for the RUT and 2945.81 for the Nasdaq. ( Note: on the Nasdaq, there is some subjectivity because of the prior day gap ).

Position sizing is 20% long and the election results  ( or lack of ) will dictate portfolio sizing tomorrow. Recalling DeMark’s appearance on CNBC and Bloomberg, he gave the market roughly ten days for the market to start asserting itself or risk seeing a new bottom.  We’re at that point.

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