- 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
- This blog has a copy of all header posts that I publish anywhere, so that those interested in seeing what my thoughts are on the markets can find them easily.
- I will be answering questions and responding to comments, so feel free to respond to any posts and I will see your comment even if it is not on the most recent post.
- If you're interested in seeing any intraday charts I post, I do that on twitter, and my twitter handle is @shjackcharts.
- The charts in the posts are as large as I can practically make them. if you would like to look at one more closely, click on it, and the link will take you to a larger version at screencast. If you click on that again, you will get a full page version, and can use the resizing function on your browser to enlarge parts of interest further.

Friday, 25 October 2013

Looking for Clues

I've had a very busy morning with offline stuff so just a quick post today. There have been two promising setups for a decent decline on SPX and ES this week and, so far at least, both have just faded away as ES has instead been forming a rough triangle. In the context of the steep preceding rise I'm inclined to interpret this triangle as a (62%) bullish pennant, so I'm leaning towards at least a test of the highs here. ES 60min chart:
On the SPX 60min chart you can see the H&S that was forming and then faded away after reaching the top of the right shoulder. The most likely moves from here are a test of the highs to put in the second high of a double-top, or a break over the current highs, possibly to retest broken rising wedge support that would be in the 1770 area today. SPX 60min chart:
If we do see a strong day today then the highest close that I would expect to see would be in the 1765/6 area. That fits with the weekly upper bollinger band and where the daily upper bollinger band would be likely to close if we see a strong day. SPX daily chart:
I'm very pressed for time today but I thought I should show the nice looking short term reversal setup on CL here that could deliver a strong bounce into the 101.5 area. The main downside targets are still in the 90-2 area but this could be a nice scalp long followed by a highly profitable short. CL 60min chart:
I don't have a lot of conviction on direction today. ES frankly looks a bit lost here, the loose bull pennant isn't a sharp enough pattern to inspire much confidence, and in any case this pennant/triangle is only 54% - 62% bullish depending on interpretation. I'm leaning bullish but it could easily go the other way. For the moment we are in range on SPX between 1740 and 1760. I will leave you today with a Monty Python sketch that came to mind for some reason when looking at the ES chart for the last couple of days. Enjoy and have a great weekend :-)

No comments:

Post a comment