Friday, March 11, 2011

Trader Update - 11 March 2011 -

Trading Environment:

- Institutional selling action sideways trading range with an up tick
-SPX 500 in Up-condition_ C-RSI 30 +1.61 strength
-New Lows: 26 - danger 26-zone - below panic zone 50 (+)
-Long Term Trending Fed- and Foreign net-Liquidity Inflows 'downtick' into mid expansion territory
-Leadership stock ratio: +0.001 bullish advantage  
-VIX 21.88 (current market stress level: 20) _ D/Vol sideways _ 26 New Lows
Confirming weakness:

-C-RSI 9 below C-RSI 30 _C-RSI 4 below C-RSI9
-institutions in low level distribution 

extreme caution - index close to 'sell' condition

Today's Session:
...the SPX 500 off intraday Low *1292 with today's  market internals constructive. However, uptick buying power remains on the subdued side, suggesting upside bounce potential will not let the index stray too far past the March 2 Low *1303 resistance
...a likely failure at *1303 or March 10 congestion *1305 will force the index into another downdraft with the January 31 High *1287 as target_potential to extend losses to the January 31 Low *1277 before blopping out
...a successful defense of  *1277/*1287 support will provide the foundation for another rally that targets upper channel resistance current *1384 in the dly. 6-mth. trading setup_ potential to reach out to hit a *1420 measured objective

Kind Regards

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