Friday, April 8, 2011

WMA 8 April 2011 - Interesting times...

Weekly is reversing uptrend. Indicators are attempting a second cross into bearish territory and both a bearish Setup and Countdown are in place.
Daily has the second lower high, and Sell signal (2A) is activated. Indicators are weakening into bearish territory.
Breaking support at 108.2 will see a confirmed breakdown.

Weekly has been consolidating in range for the past 6 months. No trend.
Daily appears to be bullish. Bullish SEtup in place. No signal.

Weekly has been ranging over a wide berth and is overbought on the Stochastics but RSI is coming up, while still in bullish territory.
Daily is in 3 candle for Bullish Setup, Buy signal (1A) was given on Thursday. MACD about to cross into bullish territory while RSI and FI have already crossed.

From the leading indicators, the S&P500 should be heading into bullish territory for the short term.

Weekly is overbought with bullish Setup in second week, breaking a Sell signal (2A), which is very bullish.
Daily is approaching a likely breakout to achieve a higher high by next week. No buy signal - yet.
The S&P500 futures are indicating a very bullish picture.

/DX (USD futures)
Weekly has broken very longstanding support and is showing very bearish signs. Bearish Setups and Countdown are in place.
Daily is also very bearish with berish setup in candle 7 and bearish Countdown in 12. Some sort of bullish divergence may be developing as the indicators are not as bearish as they should be.

/CL (Crude futures)
Weekly is very bullish, in period 8 of bullish Setup. While the XOP at 117 is in sight, the overbought conditions may not allow it in the short term.
Daily is in bullish Setup period 7. However, there is concern for this bull run as the FI, stochastics are indicating a possible bearish divergence. Price is near mania at 112. MACD is very overbought although RSI is strengthening.
BULLISH (for short term)

/GC (Gold futures)
Weekly is VERY BULLISH although price is mania, with a bullish Setup just starting.
Daily at perido 7 of bullish Setup, period 11 of bullish Countdown. Price is in mania with MACD bearish divergence. This is bullish BUT has a high probability of a correction by mid next week once the Setup and Countdown ends on Tuesday. This brings forth a very large bearish divergence on Gold in the weekly chart.
BULLISH for now, BEARISH divergence warning.

DBC (Commodities)
Weekly is very bullish in a very long trend, currently in the last week of the Countdown. Indicators are very overbought and RSI, FI bearish divergence is observed. Price is at double mania.
Daily is in mania with some bearish divergence, at period 6 of Setup. This is likely to be the last push for commodities and should have a trend reversal wave pattern for a huge weekly correction.
BULLISH till correction

The MadScientist - 8 April 2011

Note: Any material posted here is of my sole opinion, and my opinion may differ from others. It is definitely NOT a solicitation to do anything else as a consequence of reading this material. The material presented here is intended for educational purposes only.

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