Monday, January 30, 2012

Waiting, watching

Paying close attention to how the market behaves this week.  We are into some resistance not to be taken lightly; and observing how we either chew through these levels or pull off them is the key.  Below is the S&P 10 min. chart showing recent price action.  Iv'e littered this chart with support / resistance levels; which i expect the market to at least react to.  The key for me going forward is HOW the market reacts to these levels.  As you can see in today's price action, there was an orderly upward move into resistance which could be described as a bull flag.  From here, if we react to today's high by pulling back, which i have to consider that scenario, i will take a swing low that is higher than yesterday's low to be positive for a continuation to the upside.  Or, a move lower than yesterday's low to be a confirmation of a bear flag and a sign of downside search for a better support level.  On the first scenario of a higher swing low, from there i will be looking at how we attack yesterday's high, how we react to it, if we can make a higher swing low from the previous low, or move higher yet, and what kind of pattern may develop in the price action.
 I'm keeping it brief tonight, but will be doing post market commentaries on the technicals for the S&P most days.

                                                                                         CLICK CHART TO VIEW

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