Chart Prepared by Jamie Saettele, CMT using Marketscope 2.0
Automate trades with Mirror Trader
-Last Wednesday’s rally ‘no taper’ has nearly been completely retraced.
-The underside of former channel support along with the 21 day average acted as resistance last Thursday. The 61.8% retracement of the decline from the 8/28 is slightly higher at 1379.
Trading Strategy: Failure at the trendline / 21 day average is bearish…especially on supposedly bullish ‘news’. In the event of a bounce, watch for resistance from 1348 to 1356 to short against 1376. If that rally never materializes, then a head and shoulders breakdown may come into play.
LEVELS: 1273 1299 1316 | 1340 1349 1357
- Basic Materials Industry
- Commodity Markets