If you are wandering what the hell is going on with Stock market? you are not alone. Every day market gaps higher and in the last 2 hours of trading we head south. Technically we are in the new stage of the bear market, big institutions try to manipulate the market they buy future market over night and shoot the E-Mini S&P up then in the morning when you wake up you see market gaps up. Moving the Future market is much easier than any indices, all you need is a couple billion dollars. Therefore big institutions use it as a effective tool to gap open the market higher in hope of squeeze the shorts. I don't mind if they shake up the amateur bears, but if S&P500 gets above 1100 you really don't want to stay short.
S&P500 has formed a head and shoulder. At this point it is hard to say what is going to play out . S&P500 has been moving in the 1100 to 1040 range. We are in the "no man's land", if S&P500 gets above 1100 the head and shoulder pattern is out the window and S&P500 should rally to test 1152 resistance level.
S&P500 has hit 1044-1040 level 3 times and every time we got a bounce. If we move to 1040, I expect this time it won't hold. In the case of 1040 violation S&P500 should tank to 980-950 level.
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