Tuesday, March 15, 2011

Trader Update - 15 March 2011 -

Trading Environment:

-Institutional selling action sideways trading range with a up tick_index at inflection point
-SPX 500 in Up-condition_ C-RSI 30 +1.67 strength
-New Lows: 26 - at danger 26-zone - below panic zone 50 (+)
-Long Term Trending Fed- and Foreign net-Liquidity Inflows 'down tick' in mid expansion territory
-Leadership stock ratio: -0.215 bearish advantage  
-VIX 21.13 (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
-hedge funds selling

extreme caution - index close to 'sell' condition

Today's Session:

...the SPX   crashed past the January 31 Low *1277 inflection point to intraday *1261 and appears to have found some support for now. Up-ticks off *1261 are unconvincing and risks for more downside is high

...below the January14 Low, chances are, the market will want to test the December 27 Low *1255 before a possible bottom may be in place

...a successful defense of  *1255 support will provide the foundation for another rally that targets upper channel resistance current *1376 in the dly. 6-mth. trading setup_ potential to reach out to hit a *1408 measured objective

Kind Regards

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