Markets poised to move down after Mutual Monday

BUSINESS >> FINANCE >> TECHNICAL ANALYSIS >>   Markets poised to move down after Mutual Monday

Markets poised to move down after Mutual Monday

Neural Blog 11th May 2010

support and resistance levels

support and resistance levels

SR levels S&P

Russel and S&P

Click images to enlarge.

There are a multitude of reasons why what happened, happened. However if you stick to your support and resistance levels you would have had a substantial increa

No supprise to see a high on Monday with continued selling through the week

There has been a change from the usual sell on Friday with "Mutual Monday" a magic up day that has consecutively been positive 85% of the time for the last year. Looks likt the going strategy is to buy into Friday Close, ride out Monday and then start the selling into Tuesday. Thursday has been the worst day in the trading week - actually when most of the biggest down moves happen.

We've seen, on a number of occasions recently that Monday's Tuesdays mark the high for the week.

The ES has drifted to it's key support zone. 1140-1143 area for the last few hours. If we rally off here the initial local resistance is 1147-1149

Euro gapped massively from news from Greece only to see the Euro start to roll over and grinding sideways. It's been consolidating through the close. It's been stair stepping down through each of the zones with no rallys.

ES rallied to the resistance base with last night's price action getting to yesterdays zone.

SP 500 (ES June10): R3: 1173.50 - 1175.00 R2: 1168.50 - 1170.00 Swing Zone: 1162.50 - 1164.00 R1: 1157.50 - 1159.00 Initial Resistance: 1151.50 - 1153.00 Initial Support: 1140.50 - 1142.00 S1: 1134.50 - 1136.00 S2: 1128.50 - 1130.00 S3: 1123.50 - 1125.00

Russell 2000 (TF June10): R3: 705.50 - 707.00 R2: 700.50 - 702.00 Swing Zone: 693.50 - 695.00 R1: 688.50 - 690.00 Initial Resistance: 683.50 - 685.00 Initial Support: 676.50 - 678.00 S1: 672.50 - 674.00 S2: 668.50 - 670.00 S3: 663.50 - 665.00

blog comments powered by Disqus