Friday, December 14, 2012
S&P500 Price Action
The daily chart of S&P500 has bearish price action. It is a combination of a shooting star and evening star. If you have not already shorted last night, you may short now at about 1419. But close at 1403 (Fibo retracement level) to have higher chances of success.
These candlestick formations have a relatively high chances of success - about 60 to 90%, depending on how far you choose the target profit to be.
I did not show any other indicators on the above chart. Note that there is clear bearish divergence on the daily RSI, Stochastics, and Williams. Accuracy is also rather high at 70%, if you are conservative and take profit at the 34 day SMA (not shown).
For me, my bias for trading US stocks is still on the long side. Any pullback is an opportunity to enter to ride the next wave.
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