Charts I’m Watching: December 5, 2011

UPDATE:  11:00 AM

Broke through 200 SMA but pulled back.  Hourly negative divergence getting pretty extreme.  Just reached .886 Fib retracement of the 1277.55 high.

Daily RSI right up against its two TLs.  Any further and it will start to look like a breakout.

Given the potentially imminent loss of AAA status by Germany, France, et al, the following FT article is timely.

UPDATE:  10:00 AM

SPX right up to the 200 SMA at 1264, backing off, still showing negative divergence.

UPDATE:  9:15 AM

Markets rallying strongly on more eurofix rumors.  Financials especially strong, but they are tracing out a rising wedge on negative divergence — a good sign of a possible reversal.  The Gartley we were tracking last night fizzled.

The eminis are back to the same Bat pattern we saw on Friday, with even more negative divergence and a little double top this time.

We’ll see if this rally has any staying power once the cash markets open.  We’re overdue for a good gap and crap…


Gartley setting up on the futures 5-min chart, completes at 1258.31.

Potential EURUSD and DX RSI trendline backtests on the 60-min charts…


Charts I’m Watching: December 5, 2011 — 1 Comment

  1. Pebble thanks for the updates. I am watching a H/S pattern that could play out with a neckline around 1192. Looks like we may have filled out the head this morning. The target on that pattern would be 1119