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A Break
May 27th, 2009 at 1:19pm · 5 Comments
The close of the 2PM bar on the 135 minute chart brought a net-line sell signal as the 902.75 level was penetrated. Look for prices to get to the lower 135 channel which is now at 870. At a minimum, the 60 minute channel at 877 should be attained. The last few points will be tougher.
Tags: General Market Commentary · S&P 500
5 responses so far ↓
1 Aronny // May 27, 2009 at 1:54 pm
I wonder how one suppose to use this information for trading. I have sold the S&P earlier today in anticipation of a turn to the down side, lucky me. whold you say that 877 is a good level to buy in anticipation of the reversal from the 877-870 range?
2 rich // May 27, 2009 at 5:48 pm
It may not reverse this time of course, but like you, I’ll be betting it will until it doesn’t. 877 is the level I will exit shorts and enter longs. If it reaches 870 then we are out of the trading channel, and I will exit my longs as the next downleg will in all likelihood have started.
3 LovesBeta // May 27, 2009 at 10:04 pm
Here is the link to the MCO on NYSE. The red zones show kind of bear flags on the MCO and the blue indicate the time lines and what happened after them since last year. We may still bounce from here, but I wouldn’t bet that way. From just looking at the chart, it looks like 5000 might be a bounce point on the south side:
http://i713.photobucket.com/albums/ww139/LovesBeta/NY-MCO.jpg
4 rich // May 28, 2009 at 3:18 am
Potential bear flag on the SPX as well. Blowoff bounce looking less likely than further weakness I think.
5 Josh // May 28, 2009 at 6:51 am
Watch 930.17 on SPX. Will probably happen sooner rather than later. From there 944 is possible before we head down.
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