Cluster Of Pain
The bulls better start getting their ducks in order. We are now in a seasonally bullish week and instead of sticking it to the grizzlies we’re still stuck in the 1400 – 1430 cluster of pain. For almost two months the 1430 mark has effectively served as a brick wall and if Santa can’t lift us over it then we are probably looking at some grim candles at the beginning of 2013.
The volume hole has shifted slightly and is now centered near 1423. If you count out the quick stab lower in November then it’s clear that the cluster of pain spans between the 1440 and 1430 mark. And the current cluster was preceded by another one which spanned between 1425 – 1460. So obviously everyone is worn out and that’s usually when surprise moves happen, be on your guard.
Short term we’re back at the 100-hour SMA. Technically we can play the sides here as usual – the bulls do have a seasonal home advantage plus it seems that the 100-day SMA is holding up thus far. Mrs. Market seems to be in a crappy mood and wants to inflict as much pain as possible. Having said that however let’s not forget that emotions are for suckers and it usually when most folks give up and walk away that we’re seeing big surprise moves. A breach on the hourly panel may be a good way to hitch a ride higher, so let’s work with that.
More charts and non-biased commentary below for anyone donning a secret decoder ring. If you are interested in becoming a Gold member then don’t waste time and sign up here. And if you are a Zero or Geronimo subscriber it includes access to all Gold posts, so you actually get double the bang for your buck.
Please login or register for Zero Data Feed (non-recurring) or Zero Data Feed (recurring) or ES Gold (non-recurring) or ES Gold (recurring) or geronimo/ES (recurring) to view this content.
This entry was posted on Monday, December 17th, 2012 at 1:29 pm. Both comments and pings are currently closed.