Good Morning All
I apologise for my lack of updates of late, but I have recently taken on a new trading role at a major IB in Australia. This is a huge opportunity for me and is indicative of all the hard work I have put into my trading and this site. I have every intention of keeping the blog going and will continue to post regularly now that I am setup and settled. Please keep all the comments and questions coming.
I will post some charts later today but here are a few of my thoughts coming into today:
-S&P futures have gapped down 10pts to 1330 as I write. The market continues to struggle at the top end of the range i.e. 1340 to 1345. The Nasdaq is also "testing" and failing at previous highs. Key short term support is 1315 to 1320 for the eminis.
-The S&P needs to hold in today/Tuesday to keep this rally intact. This market is still in a broad range thus trading the range is key until a clear signal comes highlighting a range expansion.
-SPI futures gap strategy will be in play today. I am looking for support at 4560 and then all the way down to 4530. Strong resistance at 4585/4590. Today will be a volatile one I believe but remember to buy support first, and then short if it drops when day trading.
-Bigger picture, the XJO has put in a solid double bottom pattern off the 4450 support level. Look for pullbacks to 4530/4555 for a possible retracement long trade. Any break of 4450 in the coming weeks is bearish indeed.
-China continues to buck US overnight leads. Despite the recent surge in Eurostoxx and Eminis, China has actually fallen from 2830 to 2770 over the last 5 days. This is NOT good and the also time I saw this decoupling in the Shanghai Comp was at the recent April high before the big sell off. 2750 is key short term support and this needs to hold
-Currencies are showing some interesting divergences. AUD broke out of the consolidation pattern I highlighted some weeks back and is now "testing" 1.10. I am looking for a possible bearish reversal out of here. EUR is still rangebound and 1.45 is key short term res.