Complacency and Imminent Inflection Point While the opening losses on the index is predominantly due to the oil price shock (front month futures down 36%!), the price action is at a critical inflection point. If broken above, we could be looking at 2930-40 level but if broke down from here we could be looking for (more…)

If Only It Was So Easy! With the futures markets already up significantly on the potential early good news about Gilead Science’s Covid-19 cure, the regular session might not have much room to squeeze any more juice out of it. While the index shows +2.xx% up, almost all of it occurs in the pre-market already, (more…)

The Ubiquitous Fibonacci Still In Play With more financial institutions’ earnings pointing to a potential wave of defaults and loan losses, and with the initial jobless claims surging by the week, there is an intensifying battle between the “the worse is over” and “the worst is yet to come” camps. It would be fascinating to (more…)

Yo-Yo or Yo-Bear? With Goldman and other big institutions adding to JP Morgan’s kicking off of the earnings season, expect market gyrations to continue to become more pronounced in both directions – with knee jerk reactions as well as strategic long term rotations. The 50% retracement from last month’s crash is again under test at (more…)

Earnings to Energize or Sober Down the Markets? With JP Morgan kicking off the earnings season in earnest, expect market gyrations to become more pronounced in both directions – with knee jerk reactions as well as strategic long term rotations. The 50% retracement from last month’s crash is under test at 2796. A daily close (more…)

New Highs or Consolidation Ahead? The 50% retracement from last month’s crash is under test at 2796. A daily close above 2800 is needed to confirm the potential for further highs, while a failure to take it out means that the next leg would be to the down side. Only time can tell which side (more…)

Bulls Gunning for the Next Top? In yesterday’s trading plans wrote: “we need a daily close above 2750 to negate this”. The market easily negated that top and the opening action on the index indicates that bulls might be gunning for the next top – the 50% retracement level around 2793. A daily close above (more…)

Interim Top in Place! Our models are indicating that an interim top might be in place yesterday, and we need a daily close above 2750 to negate this. A daily close below 2630 confirms the top and might resume some selling pressure. Models caution against leaving any longs open overnight while below 2750. Between 2630 (more…)

Key Fibonacci Retracement Target Reached For the last two weeks, every morning we wrote (you can go access any day’s trading plan to see it for yourself) that our models have been looking for a daily close above 2620 to adopt a slightly bullish bias, which we got yesterday. Sure enough, overnight futures have already (more…)