Commodity Chart Of The Day
Daily S&P
(click image to enlarge)
Stocks continue to remain near their 2012 highs, but an interesting pattern is developing that I wanted to point out. In the chart above, you can see the three red arrows -- it appears a triple top to me. I am waiting for confirmation, which would be a breakdown below the short term MAs identified by the red and light blue lines. As one can see, we tested the trend line last week that has held since June.
I am expecting a trade lower in the coming weeks. Investors should be using a trade at these levels to lighten up on long stand bullish positions, in my opinion. Aggressive traders could be scaling into bearish trade. On this contract, I suggest using the Fibonacci levels as your targets on a move lower. My first target would be a 38.2% Fibonacci retracement, which represents a 60-point deprecation from current levels.
Risk Disclaimer: The opinions contained herein are for general information only and not tailored to any specific investor's needs or investment goals. Any opinions expressed in this article are as of the date indicated. Trading futures, options, and Forex involves substantial risk of loss and is not suitable for all investors. Past performance is not necessarily indicative of future results.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
