Tuesday, November 22, 2011

Tonights S&P500 Chart. Post Breach 1180 (SPY)

5 min ES 
Highlight is the breakdown under 1180 , a paragraph from my previous days's note helped identify the trading opp.

"Now that the 1200 metric is in the rear view (for now) we are staring at the 1179.25 level as the lower line in the sand. If we trade and hold with conviction under this metric another 10 handles of sell stop air pockets could be triggered. "

Pressure is on as the dollar rises into the 78.60 level, once over 79 there will be a great deal of momentum. If this does indeed happen as the euro crisis deepens 1150 could be tested in short order... If 1150 fails we could fail to 1100. Trade it day by day but have a roadmap. We could very easily bounce a bit. but it does feel different this time around. 

commodities overnight are confirming equities weakness.

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