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  • Atricle Dump - Consolidating Gains

    A is For Outstanding
    One workshop participant asked this question:I’m designing a performance measurement system for our in-house technology team and have run into a disagreement with my boss.He would grade a support technician as ‘A’ if the Service Level Agreement (SLA) norms have been met, and ‘A+’ for any additional enthusiasm shown
    price chart, and many exogenous technical indicators. One notable difference is the current rally is about two weeks ahead of the previous rally.
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    The sentiment indicators in mid-October suggested most investors were expecting the market to fall further. However, sentiment is a contrarian indicator. Currently, many sentiment indicators are far less bearish. For example, the latest American Association of Individual Investors data showed 43% are bullish and 28% are bearish. Last week, 32% were bullish and 46% were bearish.

    The chart below is an SPX daily year-to-date chart. The current SPX pattern is similar to the late May pattern (see vertical line). The similarities extend to indicators within, above, and below the price chart, and many exogenous technical indicators. One notable difference is the current rally is about two weeks ahead of the previous rally.<

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    icator. Currently, many sentiment indicators are far less bearish. For example, the latest American Association of Individual Investors data showed 43% are bullish and 28% are bearish. Last week, 32% were bullish and 46% were bearish.

    The chart below is an SPX daily year-to-date chart. The current SPX pattern is similar to the late May pattern (see vertical line). The similarities extend to indicators within, above, and below the price chart, and many exogenous technical indicators. One notable difference is the current rally is about two weeks ahead of the previous rally.

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    d 43% are bullish and 28% are bearish. Last week, 32% were bullish and 46% were bearish.

    The chart below is an SPX daily year-to-date chart. The current SPX pattern is similar to the late May pattern (see vertical line). The similarities extend to indicators within, above, and below the price chart, and many exogenous technical indicators. One notable difference is the current rally is about two weeks ahead of the previous rally.

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    The current SPX pattern is similar to the late May pattern (see vertical line). The similarities extend to indicators within, above, and below the price chart, and many exogenous technical indicators. One notable difference is the current rally is about two weeks ahead of the previous rally.
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    price chart, and many exogenous technical indicators. One notable difference is the current rally is about two weeks ahead of the previous rally.

    The steep rally suggests consolidation next week and the following week, until options expiration in two weeks. SPX closed at just over 1,220 Friday. Short-term resistance is at the extended Price-by-Volume bar at 1,220 to 1,230. Short-term support is at the 50 day MA, currently at 1,210. So, SPX may trade in a narrow, and volatile, 1,210 to 1,230 range over the next two weeks.

    November Max Pain expirations also support a consolidation. Some November Max Pain points and values are: SPX 1,205 with the value of puts over six times greater than the value of calls (which

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