The last couple of days have felt weak and appear to lack conviction from buyers. I am tightening stops on recent long positions and have exited any recent position that looks and trades weak.
S&P Futures – here we see a head and shoulders formation which has since broken down through the neckline and hit both targets.
If we back up and look at the big picture, the mid-point of the current range should serve as our guide for tolerating weakness (holding longs but with caution) or exploiting it (being more aggressively short):
S&P Futures – 135M chart – the dividing line within the range is roughly 1182.
Tomorrow we’ll want to see if this late day weakness persists in the open – a weak bounce to the neckline will be a clear invitation for sellers to jump on again, and today’s low – wherever it ends up at the close – will serve as interim confirmation that the recent uptrend is over.
Heads up…
05.04.06 15:43 #