Tuesday’s slump and re-test of the February lows has left us with two big gaps — at 1073 and 1115 — to try to fill on any short-covering upswing: A tempting trade is to bet on one or both gaps filling soon, then quickly reverse to the short side unless and until the downtrend line [...]
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Here is how I am presently drawing the down trend channel: Although we are right at the bottom of it, it looks like a down-side gapper to start Tuesday morning will stretch the lower line. There’s a good chance that we will see a ripper sooon going all the way up to fill the gap [...] Here is a little bit clearly drawn view of the S & P 500 downtrend channel I mentioned yesterday that I will be trading for the near future. I won’t be bullish until the top trendline is taken out on a close. Also, be aware that 1150 is a long term resistance level to watch. [...] While many will argue that the market’s uptrend is intact (blue and purple lines on the chart drawn above), I think shorter term traders should be paying attention to the downtrend channel drawn in black instead. A very viable trading strategy would be to stay away from initiating long positions until that channel is taken [...] Yesterday, the bulls staged an impressive comeback as the moving averages not only held, but a small gain at the close was sustained. And so the rally that cannot be killed off rolls on! For the next little while, lets watch for breakouts from the current range — S & P 1213 as the recent [...] Will this be the second successful test of the 20-day moving average in a week? Watch it at the close . . . If the bears are going to warrant any respect, they need to take out, in order, these S & P 500 moving averages on a closing basis: 10-day: 1200 20-day: 1189 50-day: 1151 Watch how the S & P does at the close, and you’ll get a clue as to whether the bears have any [...] Markets are under pressure again this morning as Goldman Sachs litigation proves a more powerful pull than good numbers from Citi group. This would be a classic place for buy-the-dippers to step and and enter. For my part, I will be waiting a bit longer for my favorite signal to emerge before going long [...] It’s earnings season in earnest again as various heavy hitters begin to report. So far, so good, obviously, but will the market eventually show signs of fatigue? Lets watch Google, which reports tonight after the closing bell: Currently pushing $600, GOOG would seem a safe bet, having broken out of that wedge pattern on [...] Only four trading days this week, as the markets close on Good Friday, and many international markets may not reopen until Tuesday April 6th, due to Easter Monday. The key levels I am watching this week will be 1180 on the S & P 500, which represents last Thursday’s intraday recovery high, and especially [...] |
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