S&P500 (/ES / SPY / SPX )
The charts this week have spoken. It is early in the week and it has confirmed that a correction is in place. The daily S&P500 futures chart is committed and will follow through due to the events that happened today. Last Friday’s 8.9 Richter scale earthquake and 10m tsunami in Japan have since ballooned into a possible nuclear disaster, and the markets really do not like that. Spooked they are, as Yoda would say.
At two hours before market open today, the E-mini (/ES) futures are -30. This clearly broke the horizontal support and more importantly the TDST. The indicators (MACD, Stochastics and RSI) either are on the way to break into bearish area or have broken into bearish territory. Closing at this level at the end of this week activates a weekly sell signal that commands a serious correction (to 1100) for the coming weeks, possibly breaking April (2011) as the most bullish month of the year.
I am writing this market update from Melbourne where I am on holiday. My full WMA will be in place over the coming weekend.
For now, watch the USD rally, Crude and Gold to dip, and soft commodities to correct hard.
The MadScientist - 15 March 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.
Tuesday, March 15, 2011
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