Follow by Email

Select Your Language

The Tip Jar

Blog Archive

Friday, December 28, 2012

Futures Signaling Today's Market Action?

The post below is from this morning's Wolf on Wall Street pre-market Futures post.

Futures-As Predicted Yesterday

With all that's going on with the Fiscal Cliff, year end trade, low volume, etc, not to mention a long overnight session, I hate to try to predict how the market will look tomorrow morning, but from the charts I have, I'm going to say weak in the a.m., maybe a gap down, maybe something worse, but this market showed us one thing today and it's what I've said a number of times, "When this happens, it will happen fast" so we could easily pop up in a volatile rocket-like move, ultimately though, the charts are still very much on the side of, "The market owes downside".

We have some decent positive divergences lined up on the 2-5 and even some 10 min charts which could give us that sharp pop that would make those January SPY calls worth some money, but the fact remains that the longer term charts and the length of the divergences on them are making this market like a very thin ledge that is cracking with each step.

And the futures...
 You may recall we started the overnight session with negative divergences, then a positive formed, I said in an overnight post...

SPX futures went negative just after the 4 p.m. (EDT) New York close, ES lost about 8 points from that negative divergence, since then 3C has bottomed and gone in to a positive divergence as it moves higher and ES moves lower, this should result in a reversal to the upside, but there is a chance this divergence becomes bigger overnight and that would lead to a bigger move, we'll have to wait and see.

The way the SPX and NDX futures are set up are perfectly as predicted, early weakness, but a longer positive divergence that could send the market higher later in the day and we do have the catalysts for it today.

Brandt Uses Worden's TeleChart and StockFinder 5 Exclusively

blog comments powered by Disqus


Disclaimer: This website may include stock, financial, economic and market analysis. Any opinions, ideas, views and statements expressed here are opinion only, subject to change without notice and for informational and entertainment purposes only. Trading stocks and other financial instruments carries a high degree of risk. It is possible that an investor or trader may lose part or all of their investment. Accuracy and timeliness of any information is not guaranteed and should only be used as a starting point for doing independent additional research allowing the investors/traders to come to his or her own opinion. Nothing on this blog is to be considered a buy, hold or sell, recommendation. Any investments, trades and/or speculations made in light of the opinions, ideas, and/or forecasts expressed or implied herein are committed solely at your own risk, financial or otherwise.
Additionally this site contains links to other companies. I as the author of the site may receive financial or other considerations from other parties that appear on this site. In no way does that imply that I endorse, condone or support products, services or views of any company, product or service appearing on this site.

The Bottom line, this site is a collection of my opinions with several companies that I may receive a fee or other considerations from, for the use of my site. I have no stake in the company, I have no way of knowing what they are about. YOU ARE SOLELY RESPONSIBLE FOR ANY DECISIONS OR CONSEQUENCES OF SUCH DECISIONS THAT MAY ARISE FROM YOUR USE OF THIS SITE. Disclosed affiliations include Worden, TeleChart, StockFinder, Google Adsense, and