Buckle Up ~ The Risk Averse Alert

Friday, May 04, 2012

Buckle Up

Well, hello support...


Given momentum's extended deterioration (bottom panel) now finding this measure in a precarious position, $SPX support revisited today might imminently give way and become tomorrow's resistance.

A possible head-and-shoulders top has formed, as well, since early-February. Symmetry and volume pass muster. Once neckline support is broken, volume should notably increase, raising prospect April 1st might mark a major top in the S&P 500.

Fast Money
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© The Risk Averse Alert — Advocating a patient, disciplined approach to stock market investing. Overriding objective is limiting financial risk. Minimizing investment capital loss is a priority.

Analysis centers on the stock market's path of least resistance. Long-term, this drives a simple strategy for safely investing a 401(k) for maximum profit. Intermediate-term, investing with stock index tracking-ETFs (both their long and short varieties) is advanced. Short-term, stock index options occasionally offer extraordinary profit opportunities when the stock market is moving along its projected path.

Nothing is set in stone. Nor is the stock market's path of least resistance always known. More often than not, there are no stock index option positions recommended.

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