Monday, February 28, 2011

Trader Update - data point 28 February 2011 -

Trading Environment:

-Instistutions moving along 'higher Low' trend, back in light accumulation
--Long Term Trending Fed- and Foreign net-Liquidity Inflows with an uptick in high expansion territory
-a VIX into Friday Close 19.22 introduces positive bias into market; the Saudi 'Day of Rage' proposed at March 11, a potential negative spike event ahead
-New Lows: 9 remain below danger 26-zone
Confirming short term weakness:

-C-RSI 9 below C-RSI 30 _ C-RSI 4 below C-RSI 9
-Leadership stock ratio reads +0.79  low positive bullish advantage

...the SPX 500 managed to move past the February 24 Low *1294 into the February 23 *1322 resistance_!325 congestion with an intraday High *1329 so far. Market internals are contructive but some selling stalled today's advance so far

...a Close above todays *1329 will set the index up for a re-test of the February 18 Peak *1344 before risks of downturn are again high

...on the flipside, if the index remains unable to settle above *1329, risks are high for a subsequent down draft that would target lower channel support current *1284 in the dly. 6-mth. trading setup, potential to spike down to January 30 High *1275

...a successful defense of *1286/*1275 should provide the foundation for another rally into June with upper channel resistance current *1366 in the dly. 6-mth. trading setup; potential to reach out to hit a *1420 measured objective

Kind Regards

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