Wednesday, February 27, 2013

02/27/13 - small short SPX, target 1500-1505

Markets opened flat but rallied in one heck of a straight line to slightly beat 1520 before taking a breather.

As pointed out yesterday, the hourly OBV believed price was too low at sub 1500 and implied price ought to readjust to near 1520.  Lo and behold it took less than a day to reach 1520.

The question is whether or not we are heading to higher highs.  Well, based on OBV levels, not surprisingly, it's telling me we ought to be > 1530.

Volume leads price.  Not necessarily a law but has historically been a good indicator.


I closed out the longs and shorted near 1520 at the end of the day.  The reason is although I think price should be > 1530, the problem is the CCIs are now moving overbought on the shorter timeframes.  Additionally CCI 8 showing a small negative divergence.

Preliminary target for end of day February is somewhere at 1500 is my guess

On the 10 minute, the ADX is cooling off a bit and price has finally come back into the kelt band.  The entire day, price exceeded the kelt and was bumping along the upper BB.

Happy trading.

No comments:

Post a Comment