Tuesday, 6 October 2015

Core resistance

With powerful Monday gains, there is now little doubt that the market is going to make a serious play to break back above core resistance of the 200dma (2060s).. and the even more important monthly 10MA (2040s). Indeed, a monthly close back above 2050... and 'normal service' will have indeed resumed.




Little to add.

I'm still of the view that the market will be very vulnerable to another major wave lower.

Most critical of all.. can the market see a monthly close - whether Oct, Nov. or later, above the 10MA, currently in the 2040s?

Best guess... a FAIL in late Oct/early Nov... and then lower. Of course, Yellen, Draghi, and Abe, might have something to say about that.

Looking ahead

Tuesday will see intl' trade data.

Waving the white flag

Having seen further price action >sp'1950, I bailed at the open, and am now back on the sidelines. I'll likely stay that way for some days. I'd consider a 'moderate' long from the sp'1950s this Wed/Thursday.. if we retrace.. otherwise I'll wait to launch another short in the sp'2040/60 zone... although that might take a fair few weeks.

A rough day.. but I live to fight another day.

Goodnight from London