Short Term Bullish for Tomorrow
posted by daytraderockstar
Jun 29, 2012 12:03 am
Like an on off switch the markets rotated back down from it's recent overbought level (see charts) down into a short term oversold level and left really no doubt on the charts that we entered a bullish bias for tomorrow. This should be an easy read even if we have a failure and cross back over on the 60 min stochastics. I will be watching the first hour to see if can hold onto a piece of the 10 point run we had at the end of the day on Thursday. Not without saying...News will always be the wild card in the charts. 60 min is bullish and daily building what looks like a bear flag. Levels to watch on the $SPX 1338 and 1308.
Everyday we wait and play the game of musical chairs in the market, Technical's seem to play out fine, but I can't help but be extremely cautious just because of all the negativity that abounds in the market. But I have seen markets climb many walls of worry in my career and also know that the markets tend to price in most news that get beaten by that proverbial dead horse. What comes out of the EU summit is the next unknown. Can the so called leaders of the world solve problems that seem to be mathematical in nature. I am not trying to simplify anything down to math, but more upset by how this is being dragged on. The key here is the problems are on the table and every scenario has been discusses over and over again. I think the markets in most part have priced in a lot of the possible scenarios that could play out. The recent high in the market is less the 100 points away on the S&P, But i will just take 35 points to really get amped.
What i would like to see as a road map for tomorrow. Slight pull back in the morning (5 min overbought), We hold onto the majority of yesterdays late day rally and we move higher on the 9:50 reversal. Could be a lot of news coming from Europe. Bias for the day is up and a 60 minute stochastic cross over back down will be a strong short signal so keep an eye on this to exit or short.
UPDATE as of Midnight 6-29 Futures moving aggressively higher tonight up +15.00 as I type this
This is going to get interesting!!