Charts I’m Watching: Jan 9, 2014

Nothing new here, just a typical late night ramp job on no news to complete a Gartley Pattern at the .786, though there’s room for a romp to the .886 at 1847.51 if the MOTU so desire.

Chase it if you dare, but there’s much more downside risk at this point.  Though there’s an obvious Inverted Head & Shoulders Pattern brewing, this is likely just the deeper retrace we’ve been expecting — a second wave that prepares the way for something rather unpleasant.

If it comes back to close the gap at (1837.95) it might be worth a short-term play.  But, as always, watch your stops carefully.

UPDATE:  10:50 AM

Gap close and then some.  SPX just completed a .886 retrace and test of the rising red channel bottom — definitely worth a shot at these levels.  Stops even more important…

The next level of support is 1827.90, the .786 retrace of 1823 to 1843 and the falling white midline.

UPDATE:  1:00 PM

PPT kicked in 1830 and SPX got the easy bounce back to 1837.  It’s all heavy lifting from here.  Ditto for ES, which looks like it’s running out of steam.

USDJPY is threatening another leg down…  I’ll be shocked if it doesn’t at least test the white or red midline here.  And, just think, this is with the dollar’s strength courtesy of the euro.

Comments are closed.