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Today´s Outlook
- Bullish %: not important right now
- Current reading is 273, over 300 is bullish
Weekly Outlook
Price reversed right at 1040 and should now head upwards. 1052 has been tested and held. The market is oversold and is due for a technical bounce to 1066, 1075, 1089 and even 1106. The reversal pattern remains alive and well and actually projects to the 1214 area. It will be a bumpy ride, should that be reality.
The world should see one more rally before price simply drops to the lows in 2011 and there it should bottom. Health care costs and taxes will cripple the business environment next year.
The week ahead is a preholiday week and is normally bullish going into Labor day next week.
Analysis
I’d say that’s follow through.
Unfortunately you had a couple of seconds to pull the trigger before 30,000 contracts hit the market in less than 30 seconds forcing price from the open to the target where price stayed for the rest of the day.
Yesterday saw 6.0 issu which is good enough to launch a rally, even if it is a short term affair. The next two days will see holiday volume, light, probably bullish. After the close we remain on a buy signal. The weekly shows a higher low, higher high.
1085 and 1090 are important to get through if a full fledged rally is to occur. Everything was tripped yesterday for a buy and on volume.
If this is a real deal rally I still expect to see 1200, a bit delayed but 1200. The big test comes at 1085.
The explosion in the sectors was almost instant and most saw 3 to 4% in one day. Today is a doji expectation. After running 40 points from Tuesday’s lows, this is going to need to digest a bit. When 20 points occur overnight and then the next 10 occur within seconds it doesn’t leave much for the trader to trade. If anyone was caught short with all the news I sincerely doubt they let them off the hook.
Good luck with your trading! |
