Friday, January 23, 2015
S & P 500 Futures...some perspective
After holding the 200 dma (yellow line @ 1966) and December's low (1961.50), the market has bounced back to levels where we may want to start trimming some long exposure.
We survived the bank numbers, but earnings are starting to pour in and volatility is guaranteed.
2 levels to trade around:
2062 was the high from January 9th. I expect the machines to do some selling there, but support lies at the 50 dma (red line @ 2042.65).
2079, from December 5th of last year, represents the peak of the left shoulder of this still forming pattern. A fail there sets up a classic head and shoulders.