S&P has had us seriously running around this week
|S&P 500
S&P has had us seriously running around this week...but as I said...Double Tops usually hold a market , and in this case it did...down we came...and overnight has seen lows of 2908...and we covered 1/2 of our position around the 2912/13 area , where we are currently...so we have a free ride on the other half...Reversal Thursday looms...and as this action was overnight...the US will wake up to a much lower stock market which if it stays where it is will actually be below the Weekly Pivot at 2915....You can see our daily pivot is at 2928...There is a chance that we could touch that, as its not far off the closing price of last night.. If we look at price action just of this week...we have traded higher... but ..and this is the big but....the closes have been awful...and that showed me that the market really didn't like it up there....even tho the DJI traded even higher...The Nasdaq as I said was your clue...closing prices also...overbought...you name it...that market had it...in saying that above 2945 and I would have been out...but it didn't...so what cannot go up...yes...has to come down...and finally It did...Now what...well if we stay below 2915 we have 2905 as the 21day M/A...and then we have the 23.6 fib level at 2883.. If we do open here...it will have broken the uptrend evident since July...This does not mean a smash lower...but what it does mean is that for the moment...with the DT in place traders will be wary of going long...Obviously back above 2915, there is scope for the DP @ 2928...
DJI Again...well....it made new ATHs of 26951 then died on the close...not really looking a who lot better this morning and has posted lows overnight of 26697...trading around 26764 pre open...does suggest that we want to trade lower...The Daily Pivot is at 26856...yesterday we overextended on the Fib extension by about 30 pips...but Im sure it was enough to drive the price lower...Today we can actually state resistance levels because we have them....I think that gap is still on the table at 26515 and I also think after making new ATHs and not being able to sustain it...with Nasdaq down as well...the DJI will struggle....as well as the gap...we have 26592 as the 9 day M/A....so lots of reasons to drag us down a bit.. DJI is not overbought. Not nearly so much as the S&Ps were...So again...we have the levels...now we await Wall ST...just to see where they lead us pre NFP tomorrow...
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