Everything is primed for the bears

The bears have everything set up in their favour to conclude the week. Both the 15/60min smaller cycles are arguably reset, the daily momentum is increasingly swinging toward the bears, and there is no QE this Friday. Primary target is sp'1625, secondary is 1600.


sp'60min

sp'daily5

sp'daily3 - fib levels

Summary

Its been a long day, so I'll keep this short.

Suffice to say...bears have NO excuses for Friday. The price action today was very much one of a natural wave'2 bounce, and now we're due some degree of downside - arguably equal to that of Wednesday/early Thursday.

I see little reason why the bears can't at least break the market down to sp'1630/25, but if the market gets a little rattled, there is a small chance that the big 1600/1597 zone might be tested late Friday afternoon.


Looking ahead

There is Durable Goods Orders data in pre-market, market is looking for 1.1%, so anything on the negative side should give the bears something to begin the day.

With Monday being closed for Memorial day, things could get a little quiet in the latter part of the day, but with no QE-pomo, bears should be generally okay going into the Friday close.

*I am heavy short the indexes, via IWM, now I wait, along with a fair few others!

Goodnight from London