Monday, April 2, 2012

Morning Market Summary and Charts 04/02/12 $SPX $ES

So, what do you think will happen on a low volume holiday week with bad data raining from the sky? Well, if trend holds that should deliver about 60 upside points for the SPX. Add to that there is a Head and Shoulders formation and the Right Shoulders these days and to act more like launching pads than breakdown points.

I'd like to think (and will caution against) this is what's going to happen, but I'm not sure they can force price much higher here. Price is stretching the known limits of market gravity and the economy is crumbling. The charts are screaming top (more not than anytime on this 6 month run). As STB has speculated, a catalyst is necessary. What could happen other than the Fed pulling liquidity (which ain't happenin) that could bring this market down? Apparently economic data attrition is not enough.

SPX 60m - This is pretty simple, either the HnS breaks down or it does not. Target areas are the green rectangles.

Bottom line is this week could deliver almost anything. Patience, form and follow the Fed, nothing has changed' Gangsta style hit and run scalp trades up or down with tight stops is the only way to play now as neither are all that safe.

Two celebratory and spiritual events this week. It is Masters week and Easter week. I'll be here for the most part, but it is a holiday week.

Congrats to Skysurfer for winning the STB NCAA challenge! a fantastic late surge to overtake LS1 (my baby). Honorable mention goes to Inc for his second place finish. Both names have been turned into the tournament committee and are facing suspension from STB for taking down LS1 in such a heartbreaking fashion.

GL and GB!

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