This chart displays an 'Evening Star Pattern' which would argue
for additional downside on Monday unless the red engulfing candle
is recovered greater than 50% which has yet to occur. Should
the market pullback on Monday, I will be watching for support
around the SPX Daily 9 EMA (also Weds and Fri lows) where buyers
may appear and lead to another leg up to test the 2007-2011
downtrend line later in the week. Should buyers fail to
materialize near these levels, then I will become more cautious for
the week. Thus, I will be watching the action on Monday for clues
to the week.
Posted by david_lee on 11th of Jul 2011 at 09:19 am
There seems no objective way to count the EW waves on the
gold chart presented on Mondays newsletter? It looks really
subjective and can hardly be verified except in hindsight (and
after adjustments)
Newsletter
Subscribe to our email list for regular free market updates
as well as a chance to get coupons!
SPX 240 Minute Chart
Posted by steve on 10th of Jul 2011 at 02:54 pm
This chart displays an 'Evening Star Pattern' which would argue for additional downside on Monday unless the red engulfing candle is recovered greater than 50% which has yet to occur. Should the market pullback on Monday, I will be watching for support around the SPX Daily 9 EMA (also Weds and Fri lows) where buyers may appear and lead to another leg up to test the 2007-2011 downtrend line later in the week. Should buyers fail to materialize near these levels, then I will become more cautious for the week. Thus, I will be watching the action on Monday for clues to the week.
Steve How concerned are you with
Posted by hmatar on 11th of Jul 2011 at 09:28 am
Steve
How concerned are you with the strength of the US dollar ??? Is it a staying thing or just a day trade ??
hmatar - not sure I
Posted by steve on 11th of Jul 2011 at 09:42 am
hmatar - not sure I understand your question but I will not be looking at longs until I see a clear buy signal.
The Evening Star pattern which
Posted by steve on 11th of Jul 2011 at 09:12 am
The Evening Star pattern which argued for additional downside on Monday seems to be playing out with the futures weak this morning.
There seems no objective way
Posted by david_lee on 11th of Jul 2011 at 09:19 am
There seems no objective way to count the EW waves on the gold chart presented on Mondays newsletter? It looks really subjective and can hardly be verified except in hindsight (and after adjustments)