Daily Bars
Prepared by Jamie Saettele, CMT
Being away from the markets for the last several weeks was helpful in that I could think about my method of analysis rather than the market itself. A revelation came when I realized the danger in favoring a specific wave count in the face of contradictory technical evidence such as momentum (RSI), monthly opening ranges, key reversals, etc. With this in mind, let’s proceed. Monthly opening range implications and the large range day on 9/7 warrant a bullish bias against 12500 and 12625. The trend is up towards the gap from May at 13081 and the trendline that extends off of the May and September 2011 highs. Near term, buying into resistance (trendline and 5/15 high) is never a good idea. A drop into 12720/50 would present a long opportunity.
LEVELS: 12720 12755 12820 12880 12900 12955
