Monday, February 27, 2012

Glass ceiling - 27 February 2012

In an analysis done in the late morning of Monday's trading, here is what I am seeing from the S&P500 futures (ES charts)...

The weekly chart (left) has perfected a Sell Setup and hit resistance outlined by July 2011 high. The past two weeks is basically a stall, rather than a pause, and the Force Index is hinting that the rally in recent weeks is not an accumulation phase. Given that the weekly price level is exceeding the maniac levels. This is the first warning that the next couple of months may see a good retracement/correction... now, we just need a reason to start it all rolling, something that should be within the next couple of weeks. (Watch Greece Lightning in mid-March!)
The daily chart (top right) is showing an obvious bearish divergence amid a stall. The daily chart close up (bottom panel) has a new Buy Setup that is just initiated, and needs to end below 1360 today to continue its reversal, making a breakdown of 1350 very highly probably this week.  It could well exhaustively break above 1360 and return through the range to breakdown as well. For now, the downside risk is much greater than 2 weeks ago.

I'd leave you with these words: CAUTION x 2

The MadScientist

27 February 2012

Note: ALL material posted here is from my personal opinion, and my opinion may differ or change without notice. These do NOT constitute as solicitation, investment nor financial advice. By reading the materials presented here, Readers acknowledge the awareness that the materials are intended for educational purposes only. For investment(s) advice, related decisions and/or actions pertaining to investments, always consult your own qualified financial advisors, brokers, etc.

Charts are from TD Ameritrade Thinkorswim platform

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