Future market has been soft and ES Dec contracts are at a level comparable to 1126-1127 cash
It's still 2 hours to open and things may change, but so far, it seems like we have detected the short term trend change in good time.
If you remember, I have been saying that a move below 1130 cash would confirm the short term trend change.
I have to see how it all opens, but if softness persists, stops for any short from yesterday can either be lowered or split into two levels. North of 1135 cash may tentatively be a good area for a stop -- it all depends how the day opens and if it stays below 1130 cash.
There is some econo-news at 08:30 and we'll see how volatile it gets and whether the result of that can set the tone for the day.
As you can see from this chart, the drop so far appears corrective in nature.
If my assessment is right, shorts positions need to be very cautious and give little leeway through tight trailing stops.
S&P 500 – May 15, 2012 - Bottom Line: Long term trend is up. Mid-term trend is down. Short-term trend is down Weekly S&P stage is Late Advance (2-C) Daily S&P stage is Strong Decli...
1 year ago