/ES weekly Setup is continuing with an earlier Sell Signal, as it seems. The daily Buy signal two days ago was countered by a Stop Loss just two days later and today is likely to have a Sell signal at the close. Our system when it fails like that, has a high probability that signals a major reversal. Combined with the current technical picture that show a massive bearish engulfing, testing and failure of a channel support-turned-resistance, plus RSI and MACD for weekly and daily, the resulting picture is omnious.
This reaction for seemingly less than desirable appears a little overdone for a -30 loss on the S&P500. Either an overreaction or underlying fear showed hand a little… looks bad till Triple Witching this month, plus June ends Nasdaq’s best 6 month run.
Looking at JNK and /HG and TIP, Napiers leading indicators for the market, it too does not look good. Similarly with JNK, a Buy signal was abruptly countered with a SL plus bearish candlesticks breaking an uptrending support line.
The MadScientist - 1 June 2011
Note: Any material posted here is of my sole opinion, and my opinion may differ from others. It is NOT a solicitation to do anything else as a consequence of reading this material. The material presented here is intended for educational purposes only.
Wednesday, June 1, 2011
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