Wednesday 21 May 2014

Pre-Market Brief

Good morning. Futures are a little higher, sp +3pts, we're set to open around 1875. Today could be pivotal. If equity bulls can't hold the sp'1860s (along with R2K 1080s), then the bigger picture would turn very bearish. Precious metals are weak, Gold -$6


sp'weekly8


Summary

*I highlight the bigger weekly cycle, since it really illustrates the importance of the 10MA, currently in the mid 1860s. Any daily close <1860..would be more than decisive..in my view.
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What about today?

Well, there is no sig' QE to help the bulls today, and if the next hourly up wave does not break the previous high of sp'1886 (R2K 1116), then it will simply make for yet another lower high.

For me then, I want to see a full reversal of yesterday's declines, but I realise that will be very difficult.

If today unravels..and I get long-stopped out (R2K <1080), then I will merely seek to pick up a short position, with a near term downside target of sp'1800/1780.
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Video update from a bearish Oscar



With yesterday's drop on the Dow and R2K, Mr C' is turning bearish. Gods help us all!
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9.45am.. I have raised my long-stops...to IWM 108.40.. that is 1.50 higher..

Opening gains..I am somewhat suspicious of..although cyclically..they were due.