Wednesday, October 29, 2014

S&P 500 futures...possible head and shoulders forming @ 1985.75

























We're above all the moving averages and I can't recall being this far away from the 9 dma (1941.50) in quite some time.

Most bears probably covered after we closed above the 50 dma @ 1962.

I'm sure there are still a lot of shorts that are disappointed the world didn't end last week and that's why we always overshoot in the short term.

But if you're a trader and got long in the 1800's, I'd use this 1985 - 1990 level as a place to lighten up.

I'd even lay out some shorts @ 1985 (right shoulder) and take advantage of the greedy bulls that are calling for 2000.

The 50 dma @ 1962 and the 9 dma @ 1941 beckon.

Tuesday, October 21, 2014

S&P 500 futures...follow up































It didn't take long to get to the 150 dma @1926.80.

The old trendline that provided support should act as resistance here.  Making some sales.


S&P 500 futures...some perspective




























Perfect bounces off those trend lines as SkyNet is firmly in control.

We closed right on the 200 dma @ 1901 last night before AAPL's earnings announcement...amazing how often technical and fundamental worlds collide.

Next stop looks like the 150 dma @ 1926.80, which coincides with a major trendline (support has become resistance).   

Thursday, October 16, 2014

Trendline needs to hold

























We're right on it this morning after testing and bouncing yesterday to close unched for the year.

Managing risk, I went back to the 2009 lows and connected the dots.

The new trend line coincides perfectly with the October, 2007 peak.

Not a prediction, and this move could take some time, but if the selling intensifies, I'd rather be prepared.

Also, bear markets are defined by a 20% move off the highs.

2000 * .8 = 1600...which is right on the new trend line.

Wednesday, October 15, 2014

S&P 500 futures at trendline support



























Saturday's blog pointed out this trendline and at the time, I thought it was a stretch.  Now its coming to fruition.

Gotta buy em here on support.  Relief rally to the 200 dma @ 1900 makes sense.


S&P 500 futures nearing unched for the year




























1846.25 is where we closed on 12/31/2013 and is a decent level of support on the chart.  Probably makes sense to cover shorts in here but wait to get long.

Sentiment has deteriorated enough for us to get a bounce back to the 200 dma @ 1900.

Saturday, October 11, 2014

S&P 500 futures...another look



Recently, everyone has been breaking out their crayons to make trendlines.

But every trendline I've seen ignores, as an anomaly, the October 2011 and November 2012 moves.

The chart above shows a trend line drawn that includes those points....since we just broke below the 200 dma @ 1900 and things could get ugly.