Replies to post #41857 on Short Term Trading Member Forum

[JLS]

DowDeva ...

My Observations:

1) The current drop of both $NYSI and $NASI are from multi-year highs.
2) $NASI is probably more pertinent than $NYSI as they are reflected in $SPX.
3) CCI(20) values below -200 for $NASI tend to signal significant drops in $NASI.
4) Those deep CCI drops in $NASI are usually associated with extended drops below $NASI RSI(30), meaning this could be only the beginning of the correction.
5) Today’s price drop puts $SPX well below nearest daily S/R of 1075 (S/R defined as at least 3 daily highs or lows within 50c).
6) The next lowest daily S/R line is at 1040.
7) The next lowest daily S/R line is at 1019.
8) The next lowest daily S/R line is at 998.
9) The next lowest daily S/R line is at 949 (the top of the June H&S).
10) FWIW, the nearest weekly S/R line is at 875.
11) The US Dollar Index broke resistance at $76.00 today and is on track to test S/R at $77.50 per Colin Twiggs.

[JLS]

D ...

your advice: "... those shorting here may be a good place to take partial profits."

I was short (long FAZ), but didn't do that -- can't predict the future.

After looking at the dollar index in the wee hours of the morning (dollar leaking down), and getting the morning's economic news, I took those profits this morning. Net, net ... probably got the same results up to this point.

Normally I would swap immediately into FAS but decided to let the dust settle for a while and see how price deals with overhead resistance. Most interested in what the dollar does going forward -- in the very short term, that's more important than watching any stock indicators.

[DowDeva]

Tol'ja...

"...Big bounce coming..."

Not sure if this is in the category of Big though, lol.

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