US markets may be in harmony with global markets and supported by the EURUSD bounce

12:20 Update
Very good rallies of SPX/SPY that leave the MA200 behind their backs. I expect one more day in green before any pullback. Some stocks considered cheap and may be attractive to bargain hunters (CZZ  FNFG  OPTR...).


SPY daily seems to me that the 5Th time to challenge the bearish resistance line 7/7/11-7/21/11 may be different because of 5 days in consolidation on the line meanwhile the previous 4 times were only one touch goodbye kiss. I expect that the movement direction will be headed to the upside.

SPY 5min trading range may be limited by boxes (125.22 - 125.48) - (126.12 - 126.55).

My trade setting for 01/03/2012
I would like to place my bets on the bull side.
Bulls: Buy if 125.22 can hold.
Bears: Short if 125.18 broken down.

Market can be in hesitation and in optimistic case could test 126.82/127.26

7:44 PM Update
US markets didn't close in green as I suggested. However as I said "Those shallow pullbacks, that 125.40 hold, are considered safe for bulls.". I played longs and I made money that I want to show you in real.
These items I keep over New Year:

These executed items all made money except HAS (HAS lost not much):

Please accept my greeting Happy New Year! to you and your lovely Family.


12:06 PM Update
Europe markets closed in beautifully green. EURUSD is in bouncing mode with some more room ahead. Fairly, US markets should be in green and I expect a close of SPY at about 126.50.


EURUSD is still in bouncing mode from the sharp sell-off on 12/28 and the low made on 12/29. This bounce may be continuing and that in turn supports stock markets for some days more.

SPY daily showed a nice bounce that pushed the price an inch above the MA200 and above the bearish resistance line 5/2/11-7/7/11 again. That favor the expectation that bulls may want to test the 126.82 or 127.26 before any substantial pullback.

SPY 5min trading range may be limited by boxes (125.40 - 125.78) - (126.33 - 126.82).

My trade setting for 12/30/2011
Those shallow pullbacks, that 125.40 hold, are considered safe for bulls.

The bullish setting is under pressure and challenged severely by the fall of EURUSD

10:16AM update
Italy debt cost eased, Europe markets look good, EURUSD is bouncing. I think bulls may get a green light to go.


SPY daily: Doesn't look good for bulls because of this selloff. I dismiss my long target 130 for the week. I tend to think that it was a mark of a reversal.

SPY 5min: Trade zone in combining boxes and symmetrical broadening bottom?

But we may see a different scenario that I will certainly buy at my lowest support level to play the rebound.

My trade setting for 12/30/2011
No more long target 130! Was yesterday selloff a mark of a reversal? Need to watch Europe market.
Bears: Shorts at pullback from resistance box/resistance line of the symmetrical broadening pattern if Europe markets and Italian bond auction today doesn't sound well.
Aggressive Bulls: Long at the lowest level of the support box and hold over weekend if necessary.

Market was in consolidation yesterday. Looks to me that SPY has been forming a symmetrical triangle and trading range today may be limited by boxes (125.70 - 126.08) - (126.74 - 127.10)

10:40 Update
EURUSD deeply dropped and is just seating on the support 1.2950. The SPY sank below my support box. It's not good for bulls and I shift to wait and see mode for today.


SPY daily showed a consolidation with bullish bias.

SPY 30min: Seems that a symmetrical triangle has been forming and the trading range today may be limited by boxes (125.70 - 126.08) - (126.74 - 127.10).

Trade setting for 12/28/2011
Maintain buying on weakness and expect the high-target of the last week of 2011 at about 128-130.

Bulls clearly have taken the control and may ambitiously advance to 129.42-130.16

SPY daily showed the four consecutive days in green and staying above the MA50. Last Friday the price got through and closed above the conjugation of the MA200 and the Bearish resistance line 7/7/11-7/21/11 and had been advancing almost without considerable pullback intraday. Witnessing a numbers of technical indicators have gotten bullish crossover last three days, I expect the ETF will hold the bullish momentum and be traded in range of 127.26-130.16 for the last week of the year.

SPY 30min trading range (125.68 - 126.00) - (126.71 - 127.16).

Trade setting for 12/27/2011

Except Europe markets drop more than 1.20%, any weakness (better than -1.20%) of SPY will be a chance to buy for long the week maybe until 130.16.

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Reviewing Trade setting for 12/23/2011

Bulls: Buy the pullback at supports and hold over weekend. => My sense told me the supports might be not reachable. Then I bought at 125.50-125.60 and kept partly over holidays.

Aggressive Bears: Play the pullback for day trade only.

11:29 AM update

Lucky. I did buy the low of the day.

SPY 5min looks breaking out the Ascending Triangle. I think next target may be 126.05 - 126.15.