Disagreed with the low fund flow perception spreading around the globe for USA markets. i strongly believe, this is a decent activities between traders & market driving forces at such level where SPX fighting on 'sell on rise'.
many technical analyst apparently have good visibility of Support/resistance on SPX daily chart, so i'm totally neglecting that part. now i talks about ADX and GMMA along with my trade.
1- GMMA - after down movement of GMMA, it is now situated above the slow GMMA and further upside movement will clear GMMA movement more. Previously, when such phenomenon happened, SPX has taken 23.1% up side movement from mid sep 2010 to may 2011, the fast GMMA were constantly situated well above the slow GMMA. it is consolidation period for SPX indices, where the clear side ways movement is visible between 1370 to 1260, looks huge rage bound.
2 - 20-ADX - after the end of Feb 2011, this king of all indicator consecutively showing weakness. not even once, it came above the level of 20. however, in this period SPX has taken good movement either side in every month, and such movement made a large trading range, mentioned above. -DI sustaining above 20 level itself a weak indication for upside movement.
now the question is, will SPX able to move above 1370 level in near future ? i would like to say 'YES', but .... before that we needs to retest the level of 1295 one more time to test its potentiality and efficiency to move upside. im optimistic to pump in some investment on long only portfolio if SPX start trading above 1340. this the level where previous irreversible H&S neckline is standing, yes it still does exist !!
However, my trading criteria is very much diff with others, where i'm speaking about the weakness/bearishness on SPX, i'm holding the short position of its future since 11th of July 2011. but, i strongly recommend to not to follow me if you do not have my paid trading service $$.
Regard
CJ
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