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: http://zortrades.com/bounce-or-flash-time-for-the-sp500/. 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
