Dec 11
14
The bears continue to press the bulls
The bears continue to press the bulls and the bulls continue to push back. The Nasdaq futures are currently trading below their 200 day moving average. That is important because the bulls have been leaning on the Nasdaq for upside leadership and now the Nasdaq is starting to break down. If the Nasdaq remains below their….. 200 day moving average I think that the pressure will remain on the bulls. The Dow is currently holding above their 200 day moving average. They are the only major market still trading above their 200 day moving average. If the Dow fails to sustain trade above their 200 day moving average then I think that we could see rapid declines across the major markets. If the Dow can sustain trade above their 200 day moving average then I think that we could see the major markets start to grind back up. The S&P cash is currently trading near their 150 day smooth moving average and their 50 day moving average. I think that this area is very important for the market. If the S&P cash cannot hold these areas then I think that will be very bad news for the bulls and we could see all of the major markets selloff. If the S&P cash can hold this area then I think that we could see the market start to work its way back up. The Transports are currently holding above their 150 day smooth moving average and their 50 day moving average. They are not as close as the S&P cash is to theirs but if they start to fail to hold this area that would be bearish action and we could see the major markets start to selloff. If they can hold this area then we may start to see the major markets start to work their way back up. Today I will be initially watching to see how we open around 1217.75. If we open below it I will be a seller (keeping a close eye on the moving averages in the cash) and be looking for the market to test yesterday’s low (1212.50) and then look to possibly test support below at 1206.75 where I will be a buyer. Failure to hold 1206.75 I will turn seller and then be looking for a test of support below at 1195.50 where I will be a buyer. If we cannot sustain trade below 1217.75 I will be a buyer and then be looking for a test of the BOV and then possibly a test of the daily pivot at 1228.75 up to the POC where I will be a seller. If we cannot sustain trade below the daily pivot I will turn buyer and then be looking for a test of resistance at 1239.75 up to the TOV where I will be a seller. Have a great day!
Written by Anthony Crudele
