- I have class in about 2 hours. I wont be out until around 930 and I won’t get a chance to put the video out until late tonight. For you later nighters you should be able to see it tonight, for those that hit the sheets early tune in tomorrow anytime before market open and it will be up. Thanks. Today was an interesting day in the markets light volume higher moves continue to happen. Do people believe the rally is fake or we are do for a major correction and their is not many buyers up here. Only time, price, pattern, and more analysis will tell so we must wait. The XLF did get a nice bounce off that double necktie support I noted only to rocket about .35 higher making that a good trade for a scalper with a couple hundred shares. In any case I will be back later with some helpful insight.
3:07 pm
- Oil futures reversing at $60 price resistance. Strong resistance at that level. If we break above that level market should rally higher and if we fail to break market will recieve more selling pressure I believe.I’m tracking the energy markets because it is the sector that gave us an extra boost higher after the financials and XLF. So when this falters we can be toast, since some profit taking has already occured in the tech and banks and it could continue if buyers give up.
2:43 PM
- XLF 15 min chart on Necktie support ( Double support ). A break above 12.16 can send the financials higher. Buyers are trying to get a good bounce off this support.
I have become a contributing member at a great site called stocktock.com. You can catch some of my analysis their and some of the other members analysis as well. The site is an excellent site and the community of traders is growing fast. Go join the fun at stocktock.com and learn from other traders. With that being said, the analysis is below.
Okay so the dollar has been moving inverse of the markets and vice versa. Right now looking at the 60 min chart you see the dollar trying to break above some trendline resistance. We did get a bounce of that level however we are still looking at downward pressure. The 15 min simple system we use on all the major indexes are above the moving avgs. Not only that, but the energy markets that took us up and took us back down for the pullback, are showing signs of stregnth again. I do not feel comfortable shorting until the prices are below the MA's on the 15 min simple system. I will show you what I'm reffering to in tonights video so going forward you will understand what I mean. The SPY is having diffuculty breaking above that 90.50 area, however we are above the MA's on the 60 min chart. This market action is pretty interesting because alot of people don't know which way we can go. Everybody has their own bias ofcourse, but you must play it right because whatever happens as long as you manage risk right you shall be able to make money. Im going to post an interesting chart of the vix that has helped me gauge these markets well on a 60 min time frame.
UUP 60 min
Vix 60 min------ notice how we are getting squeezed and we shall break up or down out of that triangle in the bottom right corner. but if you look at it it looks like an upside down flag pole and pennant pattern which would be bearish for the Vix and bullish for the markets. Lets see how this plays out. Look a little lower and you can see that the indexes still remain above their key support levels, including the nasdaq. The nasdaq looks weaker though, but still remains above.
VIX 60 min
Notice the posible bearish upside flag pole pattern on 60 min chart, but also notice how we have trendline support. Break of this support on the Vix will give markets extra boost higher. Looking at this chart here you can see why we are kinda flat after the morning pop.
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