- WE'RE JUST RANDOM SPECKS OF DUST IN A TORNADO TO THE MARKETS .......
- CHARTISTS MUST PUT ALL BIAS ASIDE AND LET THE CHARTS DO THE TALKING OR WE'LL SEE ONLY WHAT WE WANT TO SEE
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Monday, 24 January 2011

Undecided

There are some days when the market direction stands out strongly, and others when it really doesn't. So far this is one of the latter kind, with equities dithering between support and resistance without any conviction so far. On ES declining resistance is at 1285-6, and a break up through there would look very bullish, and there are support levels just below at 1278, 1274 and the 20 day SMA at 1272. A break of 1272 would look very bearish and would suggest a hit of the daily rising wedge support at 1262 ES:
NQ looks equally uninspiring, seemingly pinned halfway between declining resistance at 2285 and broadening top support at 1255:
There's a mixed picture elsewhere. EURUSD is still looking stronger than I expected, but recent action has formed a promising rising wedge:
Oil looks bullish with a hit of strong support but will turn bearish on an hourly close below 88.3:
Silver looks bearish with a test of broken support overnight and failure there:
The real question today is whether we have topped or are topping? That could still go either way. A break of declining resistance on ES and NQ would open the way to a new high or double-top, and a break below support on NQ would be a very strong signal that we have already topped.

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