Tuesday, September 1, 2009

Morning Post

The most encouraging thing for the bears is the recent trend of lower lows and lower highs. Keep this in mind if SPX should get to the 993 range. Curious to see if SPX forms a descinding triangle here. There are all sorts of various support points from 1015 thru 975. On the daily chart it looks like the turn may be for real this time as S Sto and MACD have bear crosses with a negative and slightly falling MACD hist. This fall does not have any momo so my hopes are reserved (but that could change). The lower trendline on RSI might hinder the fall. If that breaks then it has to get thru 50.

SPX closed on the lower trendline, but it should crack that at the open. On the daily SPX chart the lower BB is at 981, the 50ma is at 963 and the fibs are 38% 974, 50% 954 and 61% 934. I'll note the BB 20ma is at 1010.

On the 60m chart you have a little different scenario. SPX closed on the lower trendline and the 38% fib off of the 974 low. The upper trendline of the last triangle sits just under 1000 here. the fibs from the 974 low are 38% 1016, 50% 1009 and 61% 978. S Sto has bottomed on the 60m chart and should embed a little. The rest of the indicators look sick and might have a day or two of fall left in them.

The 30m indicators look to have bottomed but could embed.

/ESU9 has us in a falling wedge which fits most of the above. I do not like the lower trendline and expect it to reset today. Set to open slightly down. Lets see if the trendlines fight back. If not, it could get ugly.

GL Trading!


  1. WM - UNG is getting shredded right now. Things suck and they are gonna get worse. Watch my 60m chart and the target area (it is there for a reason). A while back I had a 9.50 target for the triangle breakdown. I need to do a post on it and update the charts.


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