Apologies for the late post today. I’m not feeling 100%. Still trying to shake an Xmas cold.
Another news break down on more bad news from China and I understand from twitter that North Korea are testing a hydrogen bong. Seems a bit high tech for NK but maybe that might mellow them out a bit so we’ll see. If they get the munchies then the lack of food there could become an even more serious issue of course. 🙂
New lows at the open this morning and bulls and bears have been fighting it out all morning so far. Currently bulls have been making the running but failed to sustain a break up. The key area I am watching is falling channel resistance on RUT and bulls have come close to testing that, but no cigar so far. RUT 15min chart:
No clear pattern on SPX but we do have a declining resistance trendline to watch now. If bears can take out the current AM low then my falling channel support is in the 1975 area. SPX 15min chart:
I have a strong dissonance between RUT and NDX here on one hand, and SPX on the other. Continuation down here on RUT targets the 1030 test that I looked at in detail on Monday 28th Dec. NDX below is breaking down from a perfectly formed double top with a target in the 4225 area if NDX can sustain this break. These targets are not a match with my trendline support on SPX, which is more likely to fail to hold as support now. NDX 60min chart:
There are a lot of possible 60min buy signals here, but that doesn’t mean that they’ll ever fix. There are also some serious downside targets on some very nicely formed patterns saying that if we aren’t making a short term low here, then this current decline could well smash my SPX support and make a serious downside move. This is an inflection point and whoever wins the day today, still very much in the air at the moment, will likely define the next few days.
