The purpose of this blog is to provide a unique insight into trends that guide market prices. It is intended to educate and show you characteristics about the stock market, of which, the so called "professionals" have no clue. Traditional technical analysis is almost completely worthless and that is one of the main reasons for the creation of this blog. If you enjoy market analysis and information that you will find nowhere else, this blog is for you!
Wednesday, January 29, 2014
Support has held...but for how long?
Markets on sitting right on major support and have been able to hold on for 2 days now. The following chart shows the 1765-1770 area that has held the market up over the last 48 hrs. If this is breached overnight then a waterfall type move could happen. If we trade above 1774.25 in overnight trading then we could see another move back towards the 1793-1797 zone. I will probably cover my ES short on a move above 1774.25 tonight and look to re-enter around 1790. Also note, the VIX was pushed back today by daily resistance so that is also supportive for the bulls, at least in the short term.