Trader Update - data point 17 March 2011 -

 

Trading Environment:

Confirming weakness:

-Institutional selling action _ 'selling limits' expanding

-VIX 29.40_long-term resistance 32.70 _ D/Vol break-out sideways range_ 38 New Lows

-NYSE _ (= hft-zone) _ negative strength

-SPX 500  'sell' trigger_ C-RSI 30 -5.66 strength

-New Lows: 38 _ above danger 26-zone _ above panic zone 50 (+)

-Long Term Trending Fed- and Foreign net-Liquidity Inflows _ 'sharp down tick' _ in low expansion territory _close to contraction

-Leadership stock ratio: -1.99 bearish advantage

very high market risk level

Today's Session:

...today's bounce pulled the SPX 500 back away from the 'crash site'. The strength inherent in the impulsive move signals the March 16 Low *1249 is a potential floor in place

...the index needs to push the retrace up into a Close above the March 15 High *1288 or better into the *1291 level to confirm 

...below the March 15 High *1288 _ current *1291 level, risk remains high for a re-test of the March 16 Low *1249. Any possible, intraday down spike within this double bottom scenario should bring out buyers en masse at the current *1218 level max.

...sustained trading above the March 15 High *1288 _ current *1291signals the expected rally to retrace to current *1380/*1420 is already underway

Kind Regards