Market Direction (S&P)

I would like to start a discussion on market direction if anyone is interested in contributing and keeping it going?

This may help people with market timing e.g. long or short?

I will start:

The S&P 500 has rallied for 3 days and closed with an up bar, although a smaller one with a topping tail. This one is approaching bigger resistance and although we can expect another day or two of a rally chances are supply should reappear below the 1377 area. Watch for a lower high to form there.

We are therefore looking to be short with the ma below ema and w%r3 at -20.

VIX is not extended so we can disregard this for now.

Tags: s&p, timing, vix

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Replies to This Discussion

Permalink Reply by Craig Wells on December 11, 2009 at 8:27am: Greg, the thing that the Government cannot do is change people's confidence overnight. The government is trying to get people to start spending again, but talk to the people you work with and anybody on the street and you will find that everybody's confidence in tomorrow has been shattered. That will take some time to build back up. You keep hearing things in the new like Dubai and Greece, you have to question the ability of the market to keep moving higher.; ▶ Reply to This

Permalink Reply by Greg G on December 12, 2009 at 10:08am: Agreed. And I think I just heard S&P downgraded Spain. Germany's exports are down. I don't buy the media sale one bit.

I know I reluctantly spend money all the time. It cuts into my potential trading capital. :)

Happy Trading!; ▶ Reply to This

Permalink Reply by Craig Wells on January 18, 2010 at 12:33am: Looking at the weekly chart for QQQQ, we can see two Japanese Candlestick reversal patterns in one. The last two weeks formed a reversal pattern called an Evening Star with the gap and close at the top on the week ending 1/8/10. Last week confirmed the Evening Star by the price falling into the price range of the week ending 1/1/10.

Last week also shows a Bearish Engulfment Candlestick. This indicates we can expect lower prices from here. There was also a Bearish Engulfment Candlestick on the daily chart for 1/15/10. That is a lot of negative price action and from the weekly chart at that. Look for lower prices this week.; ▶ Reply to This