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Day Trading Course, Will the market contine on it’s retracement?
So will the struggling stock markets continue to retrace the previous moves down? Who really knows? I prefer to let the market tell me what it is going to do and continue to be ready on both sides. It is always easier to go with the markets rather than fight them, so why not look at the charts and be ready to “go with the flow” rather than try and guess then next few days direction?
A few weeks ago I had a phone call from Tara Weber of CBC television call me and ask for an interview. Unfortunately I was travelling and did not get back to her in time to do the story, but today we can take a look at some of the targets we can have for the current market and where we may see price go so we can anticipate and execute.
Looking at the daily chart on the S&P there is major resistance to this move up in the 1210 – 1212 area. A failure here on the daily chart would signify more consolidated trading and tighter ranges most likely to the downside into the 1180 – 1210 range. However a break through this resistance could keep things moving in a positive direction and could clear the way for price to trade up into the 1224 and 1235 area’s with 1252.00 as a top target in this leg up. Watch for the break of resistance and a clear trend to set target in on this move.
Day Trading Course, Reduced chances of interest rate hikes by the ECB weaken the euro.
Lower inflation numbers than
expected from euro zone area together with slower economic growth also as a
result of the debt crisis have reduce the chances of interest rate increases by
the ECB, weakening the euro. European Central Bank President
Jean-Claude Trichet said yesterday that the ECB is reviewing its assessment of
inflation risks as economic growth slows. IMF President Christine Lagarde said
that European banks were undercapitalized.
Investors are
shifting to the US dollar as a safe-haven currency but this may be
temporary as it is not clear what stimuli the US fed may announce for the US
economy.
Day Trading Course, S&P 500 Weekly Price Action
Looking at the weekly chart we can see that we have found support in the 1100-1110 area and have traded to test the 1200-1208 area of resistance a couple times in the last 2-3 weeks. Each time failing to push through into the next levels of price resistance. Today price open’s in the 1189.00 area and looks to be ready to test into the 1200.00 area once again. If price manages to break through the current level of resistance in the 1208 level, next target on the weekly level would be in at 1254.50. Daily targets on the way would include 1229.50, and 1237.00 as price moves towards the 1254.50 area.
Should price fail to move through in the 1200 area and continue in the current pennant formation, Price could see choppy moves and trade down as low as 1135.00 support. All depends on who shows up to trade.
