Wednesday, April 08, 2009

2009-04-09 Market Watch

Wave counting: it’s still the same.  SPX is either in wave 2 of C which means the rally has started, or wave c of B which means the correction may last for a few more days.  Unless ES 848 is taken out, the second scenario is still possible especially when the technical indicators favor this possibility.

image

On the hourly chart, it seems the pullback is not completed before diving below 810.  EMA crossover system almost gives a buy signal however further rally is necessary to confirm it.

image SPX hourlyimage SPX EMA crossover

On the ESM9 2-hr chart, one can see that the resistance zone is actually very strong, and the futures reversed during the midnight trading session instead of approaching the lower edge of the ascending channel.  810 is another important level on the chart, getting close to it will bring ES to the resistance zone again and possibly touch the target set yesterday.

image

XLF and SKF: financials didn’t move much, however the upside breakout with increasing volume is still more likely.  SKF is right at the support/resistance and has broken out the falling wedge, but this may not mean anything.

image XLF dailyimage SKF hourly

Oil: the pullback is not over yet on the daily chart.

image daily image CL hourly

Gold: it kissed back the breakout level and turned back down.

image daily

Market breadth: today the market breadth is much stronger than previous two days in this week.

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