Pre mkt, SPX was well above 1150, which led me to believe we would stick in a range between 1150 and 1190. However, futures sliced through technical support as Euro banks starting getting crushed, some down 10%. The DAX rolled over from positive to down 3%. So when the US market opened, we were back to the 1129-1150 range, which I've been watching for days.
There's a possible descending wedge forming right now. Because we continue to hold 1129 area, I believe we break to the upside and test 1150, so I'm currently holding my only position FCX, which I picked up at 43.79 this morning. It's holding nicely as gold continues to outperform.
Here are my real time tweets which correspond to the chart above (click to see details):
1. 9:51 am
2. 10:19 am
3. 10:31 am
This turned out to be a preemptive call. Failed break out of the first descending trend line so I added the second (higher) trend line which is creating the descending wedge.
4. 10:57 am
It's 11:43 am and we still haven't broken either way.
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