Saturday, February 1, 2014

Market update

ST - Sell
IT - Sell
LT - Buy
While the decline this month has been steep, market held to the support (15675) last week. We could see a rally VST next week. I would not be a buyer of the rally till that ~ $DJI 16100 level (which is 61.8% of the decline from the top) is cleared. The 15675 level (= ~ SPX 1772) may be used as support/ resistance with stops by swing traders. I reckon swing traders dont need to trade/ open new positions between 15675 and 16100.  Hold on to your trades between that level. While traders can use the same range to buy the low and sell the high of this range. 
Wih such a clean support/ resistance levels, what is the need for indicators?

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