Published on: 11/20/2011 by Nigel B. 181 days ago
Here is a different view of things. The general market is stuck between overhead resistance represented by a large sideways line (arguably a head-and-shoulders pattern) and strong support represented by the second shaded area. We have formed a triangle in between these two areas. Which ever way this triangle breaks should give us a clue as to the next sustained direction of the market. A close below 704 would give us a short opportunity with a stop at 740. A close above 745 would give us our long trade with a stop at 735. Right now, we do NOTHING. Note that for this trade you’re waiting for a CLOSE. Intraday whipsaws can be brutal so wait for the market to prove itself by closing beneath a key swing level.