Friday, 10 June 2011

Some Elliott Musings

Morning All,

Looking like some inital positive follow through for the SPI this morning with night session closing at 4575. The key overhead resistance this morning is the 4580/4585 level. I will fading this level first with tight stops and then joining the breakout if there is somekind of consolidation pattern to play to define a low risk entry.

In my recent posts, I have been talking about buying supports in the low end of this range on the XJO and keeping it tight. I don't think there is a good risk/reward payoff for being short here and I continue to believe this. Remember the Tudor quote :)

I read a very interesting article the other day which ehoes some of my thoughts on the US markets more succiently: Last night we had our first green day in the US and I am hoping for some more folow through should 1295 on the Cash index break to the upside. My 1277 buy level on the Eminis was a good one thus far.

Some quick charts for the Ellioticians out there:

S&P 500 Cash Daily:
Fib relationships between the waves, Wave 2-4 Alt, price now hitting the trend channel. This could quickly be invalidated but I like this buy zone.

S&P 500 60mins:
Possible A=C move at 1280. Low risk area to buy for the bottom fishers.

S&P 500 15mins:
Big bullish divergences leading into last nights low. Momentum precedes price. Potential base forming and watch these levels