Friday, 20 April 2012

Pre-market brief -short the open

Good morning

Whilst yet more rain and thunderbolts strike a little to close to my apartment, its time to prepare to end the week well.

Futures suggest around sp+6pts.

SP'15min cycle

Considering the state of the 15min and 60min cycles, a move to 1380/83 at the open is an easy short I believe. Of course, any decent bear would have equivalent stops around sp'1390/95, depending on how lose you like to be.

I think we have a good chance at slipping down to 1365 today. Anything in the 1350s would suggest something much more 'exciting' for next week, maybe even a break into sub'1300.

From a move to 1365 later today, we could trundle sideways - forming a wave'2 (bear flag)..before Mon/Tue' when the bigger wave'3 lower should occur. We'll know when we get there!

Regardless, only a maniac would be chasing the open..and going Long right now. 

Good wishes for Friday trading.