Saturday, March 13, 2010

Weekend Review, March 13, 2010


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SPY broke above a potential double top pattern. At this point, the market can go either way, and there are arguments for both a continued march upwards (established trend, individual leadership stocks acting well) or a market pullback (sentiment indicators $NYA50R, $BPSPX, $NYMO, $CPCE are at levels where previous market reversals have occurred).
Bullish scenario (ESM10): one of the support levels 1134, 1137.5, 1142 finds more buyers, gap up and market closes above 1152.

Bearish scenario: any move above 1148 resistance is not sustained, gap down, and closes below 1134.

Euro broke out of a volatility squeeze, indicating that 1.345 may have been the bottom. The Euro breakout, along with a favorable economic report in Friday's pre-market led to a gap up in ES.

Resistance 1.381, 1.385
Support 1.3727, 1.368, 1.363

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