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Friday, May 28, 2010

E-minis [Update 12PM]

[Update 12PM: Another interesting count. The second zigzag at (y) may be over, but if the market can rope-a-dope all day sideways and hold upper key support, it lives for another weekend and the chance to trace a third and final ZZ to that pesky SPX gap.]

[Update 10:30PM: Uninspiring price action and a lot of upward biased ABC's in a possible broadening top (which happened at the top of P2 and overlapping at the top of Minor 2.) Perhaps lights out once it closes the gap if it does.

We'll see. It may be brilliant or look foolish. But I got to leave to the Airport.

PS - Look at the CPCE spike up. Positioning by the big players before a big move? I dunno, its a bit out of my realm.  Something is up. Good luck!]

[Update 9:21AM: I  don't see much talk about the big Head and Shoulders pattern that has already setup on the markets.  And that is actually good for bears. But why no big chatter? In July 2009 thats all you heard and when Jim Cramer talks chart patterns, well you knew it wouldn't pan out.

But here we are again.  Perhaps because its doesn't "look classic" (as if there is such a thing!) no one gives it much credence.

But in my 3 years in the markets, I have found that these stealth patterns are the ones that work. I particularly find this true with the larger triangles.  This is why my (XX) probably worked and this is why the recent wave (iv) triangle worked. Because no one gave them much credence and they didn't "look classic"..


So I really like the setup here. We have sentiment, that yes, has certainly been damaged, but what would you expect? The sentiment is not, however, thinking Armageddon, and thats the only thing that matters is that it has much room to go more negative. Nor is the market oversold either short, medium or long term.


Support/Resistance has a few keys levels I am watching:  You have around 1068-1072 and 1112-1115. Of course resistance is more subjective but that is about the epicenter for the near term trading. Gain and hold 1112-1115, it may open the door much higher.  Lose 1068-1072, you open the door much lower. And now the neckline is at the gap up area at this lower zone. Fill the gap and you probably lose the neckline for good.]

Overnight maintained support.
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