- 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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Thursday, 24 March 2011

Rising Wedges

The bears dropped the ball yesterday, and the SPX looks likely to break back above the daily and 20 MAs today. ES has already broken back above the 20 overnight and is currently testing the 50. If this level holds then SPX will open over both:
On ES the next significant resistance level is at 1304, and that is a potential IHS neckline. If ES reverses there I'd be looking for a return to the 1279-80 level to make the right shoulder for that pattern. A small rising wedge may be forming to deliver that move and the hourly RSI has moved into overbought territory so it may well happen that way:
On NQ, the next significant resistance level is at 2304, which is another potential IHS neckline. Another small rising wedge is forming that may deliver that move. Again the hourly RSI is now in overbought territory:
Copper has hit declining resistance in the 445 area and is struggling there, but has pinocchioed through on three consecutive hours which is encouraging for a break through later. Short term it has hit resistance with negative RSI divergence on the hourly chart, so it may well pull back here to consolidate:
EURUSD is looking very interesting today, as a rising wedge has formed as it moves towards lifetime declining resistance in the 1.428 area. It could well fail at this triple resistance level (shown on the chart) and I'll be watching this very carefully:
I'm not a precious metals expert, but now that gold and silver have broken up to new highs, I have a target for gold in the 1490-1500 area from the five year futures chart. That seems the obvious target for the current move up:
I'm leaning bullish today and am watching the potential IHS necklines on ES and NQ.

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