The SPX reached my highlighted resistance zone on Wednesday
which was re-tested yesterday where it again failed and began to
pullback (see my blog comments yesterday for key levels and
counts).
As mentioned here in blog and in last night's newsletter, the
reversal candles that formed on yesterday's indexes/sectors and
many stocks portended more downside (even if a weak bounce
occurred) and thus the reason I stated my stance at remaining very
cautious.
The futures slid last night moving down to test S1 and then
moved lower after the jobs data and are now testing S2.
One thing to note about the evening star or shooting star
patterns is they are most predictive at the top (or bottom for
morning star) of a trend. This week and last week's action
seems like more of a corrective than a trending pattern.
In a normal market I would favor an upside resolution here.
However, in the precarious position we closed, and in light of the
fact that I believe we are in a bear market, I could
easily see a large gap down trapping the newly minted bulls.
Evening star pattern on the
Posted by steve on 1st of Sep 2011 at 03:59 pm
Evening star pattern on the daily index charts which is not good but have to see if news can trump charts on Jobs. I remain cautious.
The intraday charts sport a possible falling wedge which could break to upside so some mixed signals here but have to give more credence to daily.
SPX Comments Update
Posted by steve on 2nd of Sep 2011 at 08:43 am
The SPX reached my highlighted resistance zone on Wednesday which was re-tested yesterday where it again failed and began to pullback (see my blog comments yesterday for key levels and counts).
As mentioned here in blog and in last night's newsletter, the reversal candles that formed on yesterday's indexes/sectors and many stocks portended more downside (even if a weak bounce occurred) and thus the reason I stated my stance at remaining very cautious.
The futures slid last night moving down to test S1 and then moved lower after the jobs data and are now testing S2.
http://cdnmo.coveritlive.com/media/image/201109/phpeuO89khs2.png
Bear flag formed on ES
Posted by steve on 2nd of Sep 2011 at 09:19 am
Bear flag formed on ES 5 minute that just broke down for short term view.
Using a 3 day candle,
Posted by steveo on 1st of Sep 2011 at 08:54 pm
Using a 3 day candle, ES has a shooting star candle pattern
One thing to note about
Posted by frtaylor on 1st of Sep 2011 at 08:56 pm
One thing to note about the evening star or shooting star patterns is they are most predictive at the top (or bottom for morning star) of a trend. This week and last week's action seems like more of a corrective than a trending pattern.
All triggered setups on watch
Posted by darnelds on 1st of Sep 2011 at 04:55 pm
All triggered setups on watch list are longs.
In a normal market I
Posted by chartboy on 1st of Sep 2011 at 04:36 pm
In a normal market I would favor an upside resolution here. However, in the precarious position we closed, and in light of the fact that I believe we are in a bear market, I could easily see a large gap down trapping the newly minted bulls.
Gotta love the smell of
Posted by chartboy on 2nd of Sep 2011 at 08:18 am
Gotta love the smell of toasted "freshly minted bulls" in the morning...lol
Gotta love the smell of toasted "freshly minted bulls" in the morning...lol
Posted by dukeseegers on 2nd of Sep 2011 at 09:42 am
B-b-b-but I thought all those guys on CNBC said this was a buying opportunity!
Hmmmmmm...maybe they were right, an opportunity to buy SPXU,TZA,TQQQ,etc.