This week’s guest post comes from Adam Beaty over at TheBullogic.com (definitely worth book-marking). This week, as he has done in week’s past, we have his weekly forecast which I find very helpful in getting the trading energies flowing after a nice long weekend. You can also follow Adam on Twitter too.Â
Well last week mixed up the markets so what can we expect from this week?
We are starting to see some in decision in the markets with the formation of two doji candles back to back. Both the bulls and the bears are fighting to have their way and neither are getting it right now. The bulls showed a lot of strength when they closed above 1276 level on Thursday. Unfortunately they were unable to push that move into Friday as the bears made sure this market wasn’t going to run away. Bulls are still fighting for the 1296 and bears seem determined for the 1276 level. With the piercing of support at 1276 I think ultimately the bears will be able to take the market down to 1262. However, when they do get it down to that level they will also be fighting the upward trendline. A break below the 1262 level will be a major shift in this market as a signifigant lower-low will be in place. If bulls manage to break 1296 they are looking at 1302 being the next major level of resistance.
The /ES on a 60min view was showing a nice head and shoulders forming at the 1273 level. On Thursday they were able to break below the neckline but unfortunately they were quickly bought back up. We could still be in the process of forming a head and shoulders pattern even though it is no longer a clean textbook pattern. We are now trading below our tight channel but we are still in the wider rising channel. Watch the price level of 1273 and a break of the rising channel for a major market shift.
