Top O the Channels
August 10th, 2008 at 4:22pm · No Comments
The tops of the Jurik/Keltner channels I monitor on three different time frames have converged just above current price levels in the S&P 500 eMini contract. The daily channel top is at 1307, the 135 minute channel is at 1304 and the 60 minute channel is at 1302. The presence of these channels all nested here are formidable resistance for the market this week. i wouldn’t be surprised if stocks make an attempt to break through and trigger stops around the 1310 area, but I think any rally here will most likely be turned back by this resistance. The eMini future may churn for a day or two between 1285 and 1305 as it builds a top before heading lower.
Stocks consider falling oil prices to be good news that is triggering reflex buying in equities. However I believe that the deflationary forces being unleashed by the dollar rally are ultimately bearish for both oil and stocks.
click chart to enlarge
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Tags: General Market Commentary · S&P 500
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