Wednesday, February 17, 2010

The Crossroads

The SPX has managed to claw its way all the way back up to 1100 which is a crossroads of sorts. In addition to being a prior resistance level, we also having the 50 day moving average looming closely overhead. This mornings test of 1100 on the ES failed, so the bears have won the initial attempt to break above this key level. It will be interesting to see how the price action unfolds and whether or not the bulls can muster the strength to push back above the 50 day moving average thereby placing the SPX back into an uptrend. This would no doubt come as a disappointment to the bears and cause me to temper my enthusiasm for entering any additional bearish trades (click image to enlarge).

[Source: EduTrader]

Assuming we remain below this level, this week's retracement has certainly setup a more favorable risk-reward for those looking to enter bearish plays.


Bunnynose said...

I saw the same thing this morning and am waiting for the close to put some bearish trades on. I like your video! LOL!!! I know every word to that song. (Who doesn't?)

Is that really edutrader (or Mach Trader? LOL!) How did you get it black? Mine is white.

Tyler Craig said...

lol... yeah it's got a good beat. Technically it's MachTrader, but until the new site rolls out I've been referring to it as the EduTrader on my site. You can format the charts to any color. Right click with in the price chart and select 'format'. Change the Chart & Scale Background to Black. Change Text to White, Grid to Black, Up Candlesticks to Green and Candlestick Body to White.

investment catcher said...

This is a wonderful website!! 参考になります。
ありがとう! Thank you!!
I'd be pleased if you exchange reciprocal link with me.

Easy investment:Bollinger bands, Technical Analysis (2010/02/19)