Trading the Line

Here we are creeping up to the all time high again, on a weak buy signal, ignoring the bad news (or is the bad news now good news?) and still wondering if we just make a weak double top and resume the selling.

A tentative Buy Signal with the move above 1874 yesterday. Not much perceived upside but perhaps the Fed can move the market up. We are at diagonal R3 so could be interesting few days.

Another rollercoaster day with a spike down into Sell Signal territory and recovery from S1.
Watch to see if S1 holds again.

Oscillator losing power – maybe.

Looks like we are mapping out a very large diamond shape, and I'm thinking that we may try to hit 1895 again to see if there is any more upside…

Not quite a Sell Signal but covered the S/T Buy Signal at 1856 ( +9 points).

As expected the market is currently showing weakness and will most probably continue to chop around in this area until we get some kind of resolution.

Look for support at S4 and/or S2 for bounce to the upside, but there is risk of a move down to S3.

Possible down-trend emerging.

Keep an eye on the Support S1 and S2 and Resistance R1 and R2 lines, as a significant break in either direction should indicate the next trend.

What's next? More of the same or a strong move? We've had 3-4 strong moves with the net result being zero.

So, modifying the longer term strategy to accommodate the chopiness, and so I have initiated LONG & SHORT positions at 1930 and 1820. Use the blue cone to protect these positions rather than S/T signals. Hold positions until 1 week prior to expiration and roll out accordingly.

If the picture becomes clearer, then we may need to morph the positions into a directional position.

Coming back up to the resistance line at 1883, and manged to break thru the diagonal resistance.

Get is indicating the likelihood of a failure at the all time high so this will be an interesting test.

Notice the oscillator is close to zero again – looks like the chopiness may continue.

Yes, we had a buy signal at 1845 prior to the hoilday, and yesterday was still a holiday for many including the UK so the float higher might have been to be expected.

From price alone, last week's recovery looks good in the S&P's but I suspect this move will be over shortly.

OK so we had the Easter fun-run up, so we can get back to the Sell in May and go away strategy.

a rather 'suspect' Buy signal yesterday. But interestingly managed to recover back to the mid-point. Potential diagonal resistance at 1874 and back in the area of max congestion.

Neutral position until next week at least. Happy easter.