Today we are looking at the S&P future, which saw a very strong session yesterday. We are still making higher lows since our last spike down on the 17th of March and we are once again within range of the major 13890-13975 area. Until we can get above this point we have to be cautious of the Bears re emerging and be vigilant for any more bad news to come out of the woodwork. There are encouraging signs building though and today our indicator in play is focusing on the MACD.
Indicators in Play
The Moving Average Convergence/Divergence measures the difference between two exponential moving averages of different lengths, in addition, a trailing moving average of the MACD is plotted (MACDA), this is commonly referred to as the “Trigger” line. This Blue lead line crossed and triggered a buy just after our last dip. Trend support and resistance lines can also be drawn on moving averages.
Summary
We are looking to buy dips here now with the Mondays low at 13137 the point where we would exit this strategy. The gap at 13302 would be an ideal place to add longs but unless something horrible emerges we are unlikely to get the chance. Looking for high volume signals on intra day charts will be the best bet for entry. 13890 is the next test.
David has been
analyzing and trading the worlds financial markets for the past 25 years. After an initial grounding with Mercury Asset Management and Warburg Securities he went on to set up his own brokerage operation in London. Since then he has appeared regularly on Bloomberg Television and been involved in providing analytics on behalf of some of the worlds major exchanges. He is also a member of the Society of Technical Analysts.
Free Trading Education - Education for Trading Stocks, Futures, Forex,
Commodities and ETFs
ADVERTISING
Free Trading Education - Education for Trading Stocks, Futures, Forex,
Commodities and ETFs
