Hedge funds

News on the street is that May was a terrible month for hedge funds.

Note

Take notice we hit 1054 in the overnight session which I had as the line in the sand. I expected a bounce there which we are now having before we really break it. I might take a number of times (usually 3) before we break through. 1054 is strong support note we went to 1052 which is negative. So lets see what the market has for us early on- I will be out at 11 for dentist and doctor appointment, so next update will be tonight.

Preview of the week

Friday was an ugly day with a gap down and continuation, but we managed to hold support by way of the right shoulder of the 60 minute inverted head and shoulders we pointed out on this blog. We wound up forming a 60 minute hammer into the close.

Friday's lows are now key. While the pattern may still be valid if the right shoulder is broken, the right shoulder holding makes the pattern more authentic and will pick up more interest.

I'm going to be watching for a gap down Monday for a buying op for a trade. From there, I'll watch to see how the Bulls react before making my next decision. If they show some initiative, I think we could get a move to the neckline pretty quickly. If the bulls are absent, then watch for a retest of the May lows and a possible double bottom to setup