The SPX fell out of the ST-S1/ST-R1 channel today which implies a drop of the channel's width down to O2. The late day strength we're seeing now appears to be a perfect retest of ST-S1. In my opinion, the channel failure makes it more likely that we'll soon see a retest of NL and a fill of the 05/04/09 opening gap. I'm still waiting for that retest before I enter long positions with my accounts not controlled by mechanical methods.
Tuesday, May 12, 2009
Channel Failure
The SPX fell out of the ST-S1/ST-R1 channel today which implies a drop of the channel's width down to O2. The late day strength we're seeing now appears to be a perfect retest of ST-S1. In my opinion, the channel failure makes it more likely that we'll soon see a retest of NL and a fill of the 05/04/09 opening gap. I'm still waiting for that retest before I enter long positions with my accounts not controlled by mechanical methods.
