Monday, January 24, 2011

Transports & VIX will be the Key

Weekly S&P Pivot Points
R3 1320.86
R2 1308.36
R1 1295.85
PIVOT 1283.56
S1 1271.05
S2 1258.76
S3 1246.25

1258-1261 continues to be an important support level for the S&P.
  • Transports are showing signs of major weakness: Outside reversal followed by a bear thrust. A break of swing low at 5018 will increase downside pressure.

Volatility may have made an intermediate cycle low:
  • squaring of price range at recent low
  • A break through R1 18-19 will give way to a test of R2 22-23

US Dollar
  • edging lower towards 77.97 swing low.
  • a resolution of the trading congestion may not occur until the Feb3-5th cluster of geometric cycles (90-180-240 calendar days)

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