- 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.

Tuesday, 4 March 2014

Never Trust a Hippy

The bear side was obviously having issues yesterday afternoon when declining resistance from the high broke after the 1834 low. An IHS was forming in the afternoon with a target in the 1864 area on an RTH break over the 1850 area, which it seems safe to assume we will see at the open. This is best shown on the SPX 1min chart I use for intraday trading. SPX 1min chart:
So what then? Well very strong (weekly closing) resistance at the weekly upper bollinger band was hit at 1868 last Friday and that's now still only at 1870. I'm considering the possibility that SPX might be putting in the second high of a double-top targeting the strong support area around 1800 on a break below yesterday's low at 1834.44. However there is still some headroom above, as I think SPX could close the week at 1880-5 without punching over the weekly upper band, and could of course go higher intraweek. SPX weekly chart:
I'm still of the view that SPX needs a retracement here and am considering the double-top scenario. This is a very heavy news week however and that seems likely to continue. This is very hard to call. I'm still feeling ill and may just take the rest of the day off.

No comments:

Post a comment