Forexpros.com Daily Analysis

CFDsPros Daily Analysis Jan 20, 2010

S&P 500 Visual Trading Update

Current Trading Plan:

Position: OUT
Last (19-01-2010) Closed position @ 1140 (-$2)
Long: Above 1150
Short: Below 1138
Exit by Stop Loss: --

Technical Indicators Notes:

Yesterday we said "More bearish signs: RSI (4H) turning down, MACD (4H) negative, ATR (4H) start to move up a bit, meaning a bit more volatility, and there the looming double top prospect in the daily chart that will be confirmed when price will move below 1127. Moving SL to 1137 (last high)."
SL triggered by a loss of 2 points in the tremendous (and strange…) move of the index. Triple top? Consolidation? RSI has broken its descending trend line but is returning down and MACD over 0, again (4H). Somehow, it does not look to us that this last day price rebound was for real (in view of the volume down-up day's comparison). But the game is played as it should be and now we wait for our triggers, with a negative bias.

Chart Legend:

Simple Moving Average (20) – Green
Support & Resistance price areas: Brown
Trend lines and Channel Boundaries: Blue
Indicator trend lines and effects: Magenta

Signals:

Long: Above the wide Green line.
Short: Below the wide Red line.
Exit position: On crossing the wide Cyan line.

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CFD trading analysis by CFDsPros. For information on CFDs, stocks and real time stock quotes see CFDsPros.

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Disclaimer
Trading Futures and Options on Futures and Cash Forex transactions involves substantial risk of loss and may not be suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time.
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