Looking like some type of wedge up here on the SPX Futures which
would be indicative of some type of top. May have to alter the
lower trendline somewhat as it could push higher in the wedge but
overall there is clear negative divergence on this last leg up so
be prudent with this in mind.
Update - I updated the wedge view. The SPX 60 minute chart is
overbought but remains embedded (indicators remaining locked above
key levels). As I stated last night, there are a few measurements
targeting the 1325-1330 area on the SPX for this move including the
inverse HS projection. The question is if the market will provide a
pullback or simply continue to work higher and ignore the
overbought conditions. Ideally, the market would provide a
reflexive pullback allowing for a lower risk entry but only time
will tell. Gold luck.
Posted by racer999 on 30th of Jun 2011 at 08:12 am
I've been following the newsletter for the past several
sessions; but it seems like the technical interpretations on
the indices and commodities is always inconclusive? It can go up or
down - have to see; but we don't need chart reading to tell us
that?
Racer - follow (respect) the trend and be prepared for changes
(or pullbacks) when such patterns begin to materialize (especially
accompanied by divergence). Trading is not about making
conclusions it's about REACTING to what the market is
presenting.
For example, the market was in a downtrend that began to show
signs of a loss in downside momentum along with oversold conditions
and divergences near the lows. That puts you on alert for a
possible reversal that requires a trigger. On Monday, the first
signs appeared with a reversal candle up with a strong close which
was a change in tone. I then said to watch for a trendline break
and a move above the middle Bollinger Band (20 SMA) which would be
another positive sign and point to higher prices. What followed? A
move to higher prices.
The chart I posted early this morning on the futures shows a
potential ending diagonal accompanied by negative divergence
telling one to be on the lookout for and end of the recent push.
Now one needs to look for a trigger in accordance with the time
frame they trade (no trigger - no trade). The market is rarely
black and white but often gray and you must accept that and get out
of the notion that someone can tell you exactly what the market
will do everyday. You build a case based upon the technical factors
and then trade accordingly.
SPX Futures 60 Minute
Posted by steve on 30th of Jun 2011 at 06:54 am
Looking like some type of wedge up here on the SPX Futures which would be indicative of some type of top. May have to alter the lower trendline somewhat as it could push higher in the wedge but overall there is clear negative divergence on this last leg up so be prudent with this in mind.
Update - I updated the wedge view. The SPX 60 minute chart is overbought but remains embedded (indicators remaining locked above key levels). As I stated last night, there are a few measurements targeting the 1325-1330 area on the SPX for this move including the inverse HS projection. The question is if the market will provide a pullback or simply continue to work higher and ignore the overbought conditions. Ideally, the market would provide a reflexive pullback allowing for a lower risk entry but only time will tell. Gold luck.
SPX is testing R1 around
Posted by steve on 30th of Jun 2011 at 09:36 am
SPX is testing R1 around 1312
$SPX 1312
Posted by windyjazz on 30th of Jun 2011 at 09:44 am
Is that a violation of the overlap of waves? Seemed very quick.
I'm already short /nq
Posted by zach06 on 30th of Jun 2011 at 09:37 am
trailing second 1/2
Squeeze!
Posted by racer999 on 30th of Jun 2011 at 09:49 am
Squeeze!
I thought you were on vacation?
Posted by zach06 on 30th of Jun 2011 at 09:36 am
I've been following the newsletter
Posted by racer999 on 30th of Jun 2011 at 08:12 am
I've been following the newsletter for the past several sessions; but it seems like the technical interpretations on the indices and commodities is always inconclusive? It can go up or down - have to see; but we don't need chart reading to tell us that?
Racer - follow (respect) the
Posted by steve on 30th of Jun 2011 at 09:08 am
Racer - follow (respect) the trend and be prepared for changes (or pullbacks) when such patterns begin to materialize (especially accompanied by divergence). Trading is not about making conclusions it's about REACTING to what the market is presenting.
For example, the market was in a downtrend that began to show signs of a loss in downside momentum along with oversold conditions and divergences near the lows. That puts you on alert for a possible reversal that requires a trigger. On Monday, the first signs appeared with a reversal candle up with a strong close which was a change in tone. I then said to watch for a trendline break and a move above the middle Bollinger Band (20 SMA) which would be another positive sign and point to higher prices. What followed? A move to higher prices.
The chart I posted early this morning on the futures shows a potential ending diagonal accompanied by negative divergence telling one to be on the lookout for and end of the recent push. Now one needs to look for a trigger in accordance with the time frame they trade (no trigger - no trade). The market is rarely black and white but often gray and you must accept that and get out of the notion that someone can tell you exactly what the market will do everyday. You build a case based upon the technical factors and then trade accordingly.
Of course
Posted by zach06 on 30th of Jun 2011 at 08:20 am
IF we new for sure... we would all be rich . I'm thinking of getting the Almanac from Back to the Future... Remember BIFF??