Wednesday, September 2, 2009

Good Morning

Channeling down as can be seen in the 30m /ESU9 below. Small pop down on the disappointing ADP report this am. So what if they missed by 60k. Whats 27%? Hell, Ford missed by 50% and that really did not mean shit either. I am surprised CNBS reported it. Pay no attention to the man behind the curtain.

Daily chart - Broke thru lower rising wedge tendline and back testing the top trendline of the last triangle break out and the 61% fib off of the 978 low. SPX runs into lots of support from 980 to 965. Lower BB at 980, 38% fib at 974 and then the 50ma below at 965. Then the 50% fib is at 954 and 61% at 934. The ONE THING that gives me caution about the daily chart, even though the RSI trendline is busted, is that the RSI is sitting on 50. ADX is about to bear cross.

The 60m chart - Indicators almost bottomed out and blown out bottom of lower BB. I no longer pay much attention to the 60m indicators as they have been very unreliable of late, but they are near the bottom and should embed.

I expect some follow thru from yesterday. If this thing gets some momo look out. If this is the end of a 3 and we have a 4 corrective, 5 should take us right to 980/974 range. That would end 1 of 1 of P3. Holiday weekend coming up and some are speculating some big bank issues then. Might make a good set up for a 3 down on Monday!

Kenny has his C top and Dan has his P2 top called. Still grinding over my no top call. Thanks for all the positive emails and comments. They are appreciated. As Aidyn noted, calling the top is not important, making $$ is. I am short and playing it as the top is in and you should too. THE STRUCTURE OF THE FALL is the most important thing to pay attention to now.

I'll be doing the long promised UNG post this am.

GL trading!

1 comment:

  1. shank

    thats some steep falling wedge on ung

    does it portend a sharp breakout when it turns


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