Last week I wrote that it looked like a double top in Dow Cash as 12,400. Probably in a week or two, after the market breaks to 11,833, which will be 567 point, there will be an analyst on TV discussing “the mysteries of technical analysis”, and how 12,400 is a mysterious “double top formation”.
Buy 11,833, Look for a bounce. Buy 11,666, look for a bounce from there. I would be a very active buyer at that level, 11,666.
In the S&P cash, look for 1278 to be the next panic sell off low. This will be especially be a good target, because we will have cut through the 1300 level. The failure of the 1300 level should bring out the bears. 1278 is a target, and then 1258 would be the area I would want to be an aggressive buyer.
Crude oil still has major resistance at the 103.41-66 area. We spiked up there, and I wrote how that level was a 62% retracement of the overall sell of from 143 down to 34. That level 103.50 area, specifically, will draw a lot of trade. Bulls and bears will be focused on how the crude moves away from those levels.
Earlier this morning, I wrote that the dollar index had reached a good level of technical support at the 76.70 level. We settled above 77 at 77.06. I continue to like this trade. Specifically, buying here with a tight stop below, with an upside target at 81.25- 81.50.
Good Trading.
CER
