Sunday, May 24, 2009

05/18-23/09 Weekend Review

The SPX sold hard into the close for a forth straight down day, the key level to watch is 875-880, 880 in a 23% fibonacci retracement from the all time high to the 666 low. It has also acted as support and resistance in the past. Whether we trade above or under this level will determine market direction for me. But the advantage seems to be to the bears at the moment with the 4 consecutive down days. We need to be careful as there is a lot of economic announcement coming out this week such as home sales, orders for manufactured goods, and consumer confidence that will dictate market direction.

ES has been stuck in 925-875 range for the month of April, we have been seeing lower highs but also been seeing highers lows in the last week.

Similar with the NDX, I don't see a dominant trend as we see lower high as well as higher lows. I will look for how the market reacts around 1382 and 1358. Direction hinges more on the 880 level of the SPX.

Winning example, CSIQ:

Potential short, K:

Long candidate, DNN:

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