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Today´s Outlook
- Bullish %: not important right now
- Current reading is -171, back to sell side
Weekly Outlook
On Monday you have the daily and weekly in down trends; lower high, lower low. Friday was a doji which means to be prepared for a change in direction. On Friday the DI signaled a BUY. This makes sense as the beginning of the week in a downtrend should try for higher prices to be sold into later in the week. The weekly had a high of 1098.50; obviously you don’t want to exceed that high if the downtrend is to continue.
The limit to the weeks upside should be 1090 and 1097. Late week we will see if they sell it off again. Downside potential is 1066 and 1052. If 1052 breaks the Hindenburg is probably kicking in but with that signal so publicized I strongly doubt you’ll see that response until further upside is in.
Analysis
Price was heading up nicely today on a buy signal when news of the increased Greek Value Added Tax hit the markets as being illegal requiring the Greek IRS to refund the taxes collected. This puts the Greek bailout into question and then of course puts the EU banking crisis back in the spot light. At some point a sovereign is going to default.
The cycle reading is -171 which puts the downside into serious question as the reading is now very low and very near the readings you see at a rebound.
Readings in this range can last a month so don’t get too excited yet. If todays price closes below 1059 it also puts the index into a TREND sell. Continue to sell rallies.
Even though we see a reversal pattern on the weekly we still need that one day of strong volume buying to reverse.
Good luck with your trading! |
