...i look at SLOW stochastic for this. 5,5 settings. ...on Friday during that big run up ( i guess from carry trade starting again ) all time frames were showing overbought... which never happens.... if you look at the last good correction... you get two good bottoms... then a rise to overbought condition... then one more pullback before resuming bull trend.... who knows what will happen this time. ...i was hoping that this correction would put us back down into the long-term up channel i had drawn for the spx.... but at 1453 we went back above it.... ...if we make a new low.... i am thinking possible bear market (5 wave down complete).... if we dont break the low..... possible resumption of bull.... respect to all....
I assume you got stopped out. What SL did you use on this one? I agree with the RSI grail. That is one of my favorite set up, doubletop/bottom with RSI divergence. It has something like a 90% success ratio... P.S.: The RSI convergence also works just in the opposite direction and expecting more movements in the trend's direction...
Is anybody ready to jump in and start buying??? I am looking at my first long at 1458. Nothing major 2 cars to test the waters and get a quick scalp of 2 pts if possible.
saxon, tough call I like to see a 1 minute bar with over 15,000 contracts traded to suggest intraday capitulation., but as far as numbers for price, this is the area 1458.50-1457.25 for a bounce.
Consumer confidence comes at 10:00am, maybe that will force fencesitters (like me) to jump into the buy pasutre or the sell pasture.
Consumer confidence #s did not really affect the markets. Then again,maybe the announcement stopped ES from further bleeding. Or maybe slowed it down? Time will tell, still over 5 hours of play.
Yes. In general, morning weakness is to be bought. In at 57, and a limit order at 52.50 (around 1 std from previous close based on option vol)--WIDE scale. Looking for low 60's.