Tuesday, February 07, 2012

Technical Picture - SPX Target Reached

Our SPX target - 1344 was reached Friday on positive jobs data. The Fibonacci extension remains in play until it fails. We'll stretch it to encompass any new highs and look for a pullback to the ambush zone. If the extension fails in the ambush zone, we'll look for a deeper pullback - 50% retracement from Feb. high to Dec. low.

In the meantime, I'm monitoring the 15 min SPY chart for any negative divergence of the RSI to new highs. This often foreshadows a pullback. So far, there's nothing to indicate the uptrend is in jeopardy. Gap support held on the first test.

BIIB flagging within a Fib. extension after coiling and ripping out of its base.

6 comments:

Borderline said...

Speaking about S&P target reached...

It seems like the major US indexes (S&P, Nasdaq, DJIA) are forming macd-price divergences. I wonder if the recent upwards momentum we have been seeing is running out of steam. I've been seeing something similiar in gold and silver futures. In addition, the USDX (US dollar index) is looking like it wants to make upwards ground.
I've detailed some of these thoughts here:
http://www.futures-trading-infonet.com/index-futures-trading.html

Mark D. Cook said...

Looks like it is foreshadowing a pullback, indeed.

Jamie said...

Yes, looking forward to a pullback after OPEX.

www.greenworldbvi.com said...

DOW seems to be going back and forth, flirting with 13K but not quite over the top. See a pullback coming soon and heading for alternative investments.

john said...

Headline: Jamie stops posting because market is too easy.

...buy pullback, repeat. When it gets too stretched: buy more.

Jamie said...

John,

Exactly, not much to blog about without being repetitive.