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.