The Wall Stands

Once again the ice wall blocking the way to SPX 2100 and beyond proved too steep a hurdle for the bulls. Yesterday’s lackluster session was a bad omen in that it showed only obligatory participation near such an important inflection point. That’s not how to storm a stronghold that has held what at this feels like aeons 

The lack in mojo made itself felt late Wednesday during the session (see the flat Zero signal on the hourly) and continued all day yesterday as buying interest tepidly attempted a reversal to previous highs. Not going to happen with a 0.5 Zero signal and today’s open is not going to be pretty judging by the futures right now.

I was about to suggest a long near 2088 but it’s quite possible we’ll see a bit more selling going into the first hour of the session. The safer play is to at least wait for a spike low on the hourly and then attempt a long if the Zero is in sync. Put your stop below the SL and you are good to go. This is a possible play until about 2084 which is our first Net-Line Sell Level on the daily panel. There are more below but if the first one gives there’s no guarantee the others are going to hold up. So either 2084 holds or we most likely are going to visit 2070 where we’ve got the 25-day SMA plus a NLSL at 2073. That ought to keep the barbarians busy for a while.

EUR/AUD is looking pretty scary here but thus far it’s holding. I’m grabbing a small long position with a conservative stop below 1.515. Question – how many of you guys are still trading Forex these days? I’m asking since the Dodd-Frank regulation affecting broker-dealers came into effect two weeks ago and that in turn took a lot of IBs out of the Forex game. I am currently shifting my auto-systems over to the CME forex futures and wonder if retail is doing the same.

Anyway, the most exciting Forex setup for a while now is waiting below the fold as I’m keeping that one for my intrepid subs. So please grab your decoder ring and meet me in the lair:

It's not too late - learn how to consistently trade without worrying about the news, the clickbait, the daily drama and misinformation. If you are interested in becoming a subscriber then don't waste time and sign up here. The Zero indicator service also offers access to all Gold posts, so you actually get double the bang for your buck.

Please login or subscribe here to see the remainder of this post.