The setups I include on this blog are used in conjunction with the 3/10macd and the criteria I ascribe to it as a way to alert me to an existing condition of price. The key concept to take away from this blog is that I try to anticipate what will happen on the higher time frame by using a faster time frame to trigger the trade setup. I do not trade a "system" I use two indicators to clue me in to price conditions. Please read the Disclaimer located in the sidebar of this site. I can be contacted via email at
I am always open to questions, comments, or suggestions on how to improve this blog.

Tuesday, February 2, 2010

Here's where it get's interesting

So, provided Friday was the "bottom" of the most recent correction, here's where the S&P500 Index stands on a weekly basis since March of '09:Price has put in a higher low and sold off around 6.3%. Fairly average in the context of the '09-'10 rally.
Off of Friday's low, price has recovered nearly 40% in two days. Directly overhead is a key level of potential resistance wedged right between the 50% - 61.8% retracement zone, the convergence of the 20- & 50EMA's (Yellow and Red line) and for argument's sake of which is better, the Exponential Moving Average, or the Simple Moving Average, I've included both (20- & 50-SMA are in Green and Blue).However, we have seen this before....there was July '09, when price blew right through this confluence.
Everyone seems to be anticipating January 19th as being the "top," but there's a fine line between retracement off of a momentum move and a (yet another) run-the-stops short squeeze up to fresh highs. It shouldn't be long before we find out which it will be.

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