Weekend Chart Roundup – Saturday 29 Sept 2012 (15:43)
Typically we have some strength for the first couple of days of a new month (or new quarter) – mutual fund inflows and portfolio re-balancing. And so there’s no reason to fall out of bed on Monday or Tuesday. But all I can see is a ledge at 1,425 that we’re perilously close to dropping through, having run out of steam temporarily on the upside.
Back on 29 July I said I had to get my head around a rally – because we had cyclical support on the weekly risk-on charts. And that strength would persist until cyclical resistance printed on the weekly charts. Well, this week we got the resistance, so I’m allowed to be a bear again.
But I’ll trade what we get. The bear in me would love another drop down, but if the believers take it through 1,440 then so be it. This bear ain’t going to die in no damn ditch.
Good luck with your Emini trading.