US markets were pretty lacklustre overnight and appear to be in a clear flag in the very short term. Despite my caution yesterday, we could be looking at a great base pattern forming under 1300. Be prepared to buy a short term breakout targeting 1310 and possibly higher. Equally, the open gap at 1285 needs to hold to keep the bullish scenario intact so shorts should be triggered at this level for a move back down to the 60s.
S&P 500 60mins:
No clear leads from the overnight session for the SPI today. Today could be a range day or drift back into deeper supports. The SPI failed yesterday at 4698 right into the resistance zone cited here. I advised caution and this played out well. The fact that we couldn't advance despite a 1%+ lead from the US shows that this market is running out of steam in the short term. Key short term supports are 4655 and resistance at 4698/4700.
Scenarios I am following:
i) Fade a move up to 4700 with a tight stop
ii) Buy a longer term breakout above 4700 which signals the base pattern/inverse Head and Shoulders
iii) Look to buy at yesterdays lows at 4655 and if we cant hold, get short targeting 4620 and possibly 4600.
SPI 15mins:
I will have more soon.
Thanks
