BarroMetrics Views: S&P Jan 14 2011
It’s good to be back. Now all I have to do is to clear the 300 or so e-mails that have accumulated while I was down with the flu ! (G).
Thanks to all those who dropped me a ‘get well soon’ note - I greatly appreciate it. A special thanks to Ana Wang who came to my rescue and kept the blog going…Thanks Ana.
….turning now to the markets…..
It seems that I recovered just in time. Don’t the markets look interesting?
For the S&P, I have a time window for Jan 14 to Jan 18 and it looks like that will be a high. I am looking to short this market so long as we don’t see acceptance above 1310 basis cash.
By ‘acceptance above’ I mean a bar where the following minimum requirements are met:
- the open is no higher than in the bottom 1/3 of the range.
- the close is no lower than in the top 1/3 of the range.
- we see an Average True Range that is no smaller than the 10-day ATR and
- We see the day’s volume at least equal to a 10-day Simple Moving Average of Volume.
With the CPI and Retail Sales due tonight at 8:30 AM EST, we may just get the entry I have been looking for. By the way…
…note Figure 1, a day session chart of the e-mini, March 2011 contract. If we see a gap to the downside by the end of trading today, we’ll have an exhaustion gap/island reversal setup and entry - the icing on the cake.
FIGURE 1 ESH1 Daily
Refer this blog post to a friend or colleague…
