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SPX-Heads or Tails

February 26, 2010 2 comments

What a DAY!

What Do I see:

  • Bullish if price goes over 1120.
  • Bearish if goes below 1050.
  • Likely support at 950-960 (If I have to guess exact number, it would be 958).
  • Green lines are my Chart art (projections). Technical Analysis is an ART!
  • ADX black line indicates trend strength but not the direction. When price was going down (from 1150 to 1050)  DI- was greater than DI+ indicating the downtrend and ADX started to rise => trend was strengthening.  Then ADX line reversed from about 35. While price started to rise,  for a short time DI+ became greater than DI- but ADX value kept on falling suggesting that lack of uptrend strength. Now DI- is back being greater than DI+. Now if the ADX starts to rise (as shown in the image) this would make for a bearish case.
  • MACD under zero, hence crossover suggest [up]correction. It has a slight hint of topping out.
  • Interesting observation: Line at 1044 acted as resistance on Oct 2008 and support on 05Feb 2010. Any relation between these times or just coincidence??

What a day today!!! Every time you get excited, market makes you humble!! In the morning Bull were jumping off the window and later in the day it was bears turn.

I do have a bearish bias, but being bull is no fun either!

Cheers!

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