The S&P seems to be looking to test its upward sloping resistance while the Russell is testing its downward sloping resistance as well as its %50 retracement. Lets see if the markets can overcome these hurdles and if not targets from previous post are in play. BTW $TSLA and $NFLX will be stocks to watch on any pullback for long entries. Ill post some targets in the coming days to see where they will likely head.
Tag Archives: $IWM
Not going to sugar coat it, March has been an ugly month for the markets. Even as ugly as it has been, it has been rather minor in the larger context. Take for instance we are still in a constructive position on the longer term weekly chart, resting comfortably above the 21 WMA that has proven to be a nice area to see buyers come in…
Now, looking at the shorter term, we burned right through the 21 DMA, which is a big red flag.
However, typically when this occurs, look for it to recover and not sit below more than a day or two. Additionally, the SAR is still below price movement and we are at the 2nd standard deviation which also can be an area of support, but if it doesn’t seem to want to retake the 21 DMA, than gloves are off and its time to play defensive until it does. Lets see if the market can find its mojo again and move above its daily moving average!
Fridays close put us right above the 78.6% Fib target extension for the e-mini futures. Looking for a pause here with a resumption to the upside to possibly the 127 Fib extension around 2069. As it stands we are at elevated levels that would be a natural area to take profits and patiently wait for breakouts or set ups. Maintaining above 1971 would open the door to 2069, but keep in mind sentiment is overly bullish right here. Would like to see some rest possibly backtesting 1971 area. Longer term I’m waiting for stocks to press higher till end of year and watching for gold and oil to drop and will sell out of market to purchase oil and gold early next year. For now buy equity markets only on pull backs.
Gold target still looking to be in cross hairs…as long as gold is dropping then this market still can run higher.