Target areas described earlier have been met. 1194.75 remains the line in the sand. As long as the Bears hold that area they will prevail. Levels of support are 1170, 1160, 1145.
My target is 1145 which coincides with the trend line from 1077 low on 8/8/2011.
The Bulls will test the 1194.75 area from below, but if the Bears can push through 1185 they may hit the stops laying below 1181. From there price should accelerate to the down side
Assuming 1181 breaks there will be a lot of work to be done before breaking below 1170 and we may trade the range between 1185 and 1170.
The Bulls lost their advantage at 1194.75 but if they manage to push higher again they will be met with resistance at 1200 and 1207, but I feel that the bias is down and doubt they will regain control.
Currently the 20 DMA sits at 1194.5 and the 50 resides at 1226. So for a while it's the 20 we need to be watching.
The internals have been lack luster and today may just turn out to be a period of consolidation.
Yesterday we had a Black Spinning Top . Today brought confirmation to short with a second Black Spinning Top . This one with a long wick is showing us the path is down
OK, it's not Wednesday just yet but I thought I'd get started with a new post.
Above we see the Weekly with a Squeeze chart.
Does this look like it's anywhere close to a Squeeze? I'd say no.
Do the forks look complete? I'd say no.
I'm looking for a sell off to the 1070 - 1080 range and then a rebound. The Daily chart below appears to be showing some pressure. The question is which way will it break.
I'm in favor of down to complete both of these forks.