A massive gap opening on monday down at 1370 will sure bring out
the bearish headlines, but there is a pretty good cluster of daily
pivot support there, the 1370 highs of 2011 AND the rising 50 day
MA. SPX daily lower bb resides at 1378 too -- typically that
is defended on first attack. A gap to 1370 (even a "stop
clearing" sell to 1363 in the first hour or two) would certainly be
a low-risk long entry -- just cross your fingers and wait for the
PPT to get behind it. If that plays out, then a low-risk
short would be either a gap fill (back to 1398) which would also be
about where the declining 13 ema is -- usually a good target for an
initial short position. I know one person who will be backing
up his enormous truck on Monday -- the Bernanke!
As per the comments I made this weekend, I am sticking with the
plan. Cleared out shorts over the last 30 minutes and I'm
cheering on the bearded wonder -- the Bernanke. In all
seriousness. with the confluence of support here, this could be a
fake breakdown and a big rally might ensue.
A massive gap opening on
SPX 15 min comments
Posted by kalinm on 6th of Apr 2012 at 03:19 pm
A massive gap opening on monday down at 1370 will sure bring out the bearish headlines, but there is a pretty good cluster of daily pivot support there, the 1370 highs of 2011 AND the rising 50 day MA. SPX daily lower bb resides at 1378 too -- typically that is defended on first attack. A gap to 1370 (even a "stop clearing" sell to 1363 in the first hour or two) would certainly be a low-risk long entry -- just cross your fingers and wait for the PPT to get behind it. If that plays out, then a low-risk short would be either a gap fill (back to 1398) which would also be about where the declining 13 ema is -- usually a good target for an initial short position. I know one person who will be backing up his enormous truck on Monday -- the Bernanke!
As per the comments I
Posted by kalinm on 10th of Apr 2012 at 01:50 pm
As per the comments I made this weekend, I am sticking with the plan. Cleared out shorts over the last 30 minutes and I'm cheering on the bearded wonder -- the Bernanke. In all seriousness. with the confluence of support here, this could be a fake breakdown and a big rally might ensue.
Very good stuff kalinm!
Posted by tomW1 on 8th of Apr 2012 at 09:28 pm