CFDsPros Daily Analysis - 11/02/2010

[futurespros]

CFDsPros Daily Analysis February 11, 2010


S&P 500 Visual Trading Update

Current Trading Plan:

Position: OUT
Last (04-01-2010) Closed position @ 1082 (+$0)
Long: --
Short: Below 1052
Exit by Stop Loss: --

Technical Indicators Notes:

Last time we said: "The index is at a resistance which is also the 50%
Fibonacci retracement level. The RSI is at the upper end of the bearish
territory and the move is quite steep. Look at our commentary on the EUR/USD
for our view on the best Elliott waves count that in a nut shell propose to
see the current price move up as a 2 of 3. The 100% (1102 area) should not
be violated to the upside if we are correct."

The index is more like the poor EURO than the great AUD. Meaning? We think
that the European woes are much more affecting the OECD traders-investors,
than the people looking at the China in their horizon. Will the Chinese
really decouple, and save the global economy? In the percentage of global
GDP that they currently represent, and in the "Bubble-like" situation of
their real-estate, we do not think so. For now. Eventually, everybody should
learn a bit of mandarin to survive...but remember that the main clients of
the Chinese's production are very sick and deleveraging.

RSI did not setout from its bearish area (blue) to show us some consistent
strength. ATR (volatility) is getting lower and lower, with no real advance
in price. Our new short entry level says that if the count is correct, we
want to catch the 3-of-3-of-1-of the next stage of the crisis soon.

Charts Legend:

In Price Window:

Simple Moving Average (20): Green
Bollinger Bands (20,2): Violet
Support & Resistance price areas: Pink and Light Green areas
Trend lines and Channel Boundaries: Blue
Elliott Waves Counts: Black and Blue numbers

In Indicators Part:
RSI (10): Blue, STOC(5,3,3): Green, ATR(5): Blue
MACD (12,26,9): Blue, Signal: Red, Histogram: Green
Indicator trend lines and effects: Magenta

Signals:

Long: Above the Green line
Short: Below the Red line
Exit position: On crossing the Cyan line
SL in case of triggered level: Dashed Cyan Line

---

analysis written by Moshe Shalom for CFDsPros.

---

Disclaimer
Trading Futures and Options on Futures and Cash Forex transactions involves
substantial risk of loss and may not be suitable for all investors. You
should carefully consider whether trading is suitable for you in light of
your circumstances, knowledge, and financial resources. You may lose all or
more of your initial investment. Opinions, market data, and recommendations
are subject to change at any time.
__________________
Forexpros.com - Bringing you live news, analysis advanced charts and quotes.
Check out our new and improved Section.
________