The SPs made new momentum lows on the 2-period ROC on Friday. It has had two good high to low days and the 2-period ROC is poised to flip up a la Buy Day. However, any morning rally will hit strong resistance between 1838 – 1842, (See market profile chart). There were two prior swing lows on the chart – 1825 – 1826.25. Both of these were penetrated early in Sunday evening’s globex session. The market can test this area again, too.
Bonds can consolidate to the 120 minute EMA there is short term support that comes in between 132’28 – 133’02.
Gold – same story – relative strength leader, can have extended run. Funds have been net huge long so this market can have shakeouts (which can be bought). Any trade below 5 SMA is a buy. Silver = poor man’s gold.
Not many compelling new setups. So far the SPs have retraced 50 points of the last 155 point swing up. First Triples expiration of 2014 this week….