- 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, 18 October 2012

Retracement Take #2

SPX didn't retrace much yesterday and continued upwards. The target is the upper bollinger band area just below 1470 and we're getting close now:
The action yesterday was very much pre-retracement type action though. SPX was forming what looks like a little double-top on negative RSI divergence on the 15min chart:
The same can be said on ES, with clear negative divergence on the ES 60min RSI:
I said that EURUSD was looking short term toppy yesterday morning and since then a little H&S has formed on increasingly negative RSI divergence. I'm expecting some breakdown today for a possible test of the 1.30 area
TLT reached the trigger level on the possible double-top there yesterday and a break below would have a target in the 117 area:
I don't think that a significant high is in on SPX and ES, but there is a possibility of that here because of the setups on the ES 60min RSI and the significant support test on TLT. We'll see. A failure to hold the 1444.5 support level on Es would look bearish but until then I would assume that we are seeing a retracement that will establish a decent support trendline on ES and SPX.

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