Today's outlook for S&P and Dow Jones futures
Tuesday, September 07, 2010
by Carol Harmer of Charmer Charts
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S&P double topped at 1107 and we have traded lower. There is support located in the 1092/1090 region, and this area may well entice early in the US session. Buyers are going to waiting here, but the is scope for further declines due to the severe overbought conditions evident on the daily charts. So for the time being selling into rallies is the safest strategy and we should look for a bounce from 1092/90 initially. The topside does look to be caught by 1107, and sellers are likely to be here. However if we exceed 1113 which would take us above the med term 50% fib level and also the 200 day moving average then we should rethink the strategy.
Now if we cannot hold onto 1090 we should be able to trade back to the uptrend line which today is located at 1073.
Dow had a narrow range yesterday, obviously...and today we look for the market to fail. 10367 offers support and if we lose this level we should be able to see the sellers on the back of this and push us lower for 10314 initially, with potential for 10286. If we can bring buyers unto 10367 then obviously we would have a little more to go on the topside.
However under current conditions it would seem that selling rallies would be the safest strategy with 10443/55 looking to be the top.
Carol Harmer has over 30 years experience of analysing and trading the world’s markets and is undoubtedly one of the most respected technical analysts in the world today.
Her career started in the early eighties, trading futures on the floor at LIFFE where she quickly discovered Technical Analysis as a way to maximise profits. She was one of the first traders on LIFFE to discover and study this form of analysis and quickly became widely recognised as an expert in its use as well as highly profitable.
This soon led to a position as Senior Technical Analyst for Midland Bank.
She was later head hunted for the role of Manager of Technical Analysis for Nomura Bank and then as Head of Technical Trading at Credit Suisse. Carol is also one of the first T/A's from a bank to join the STA (The Society of Technical Analysts) in the mid 80's and has trained and worked with some of the UK’s leading technical analysts.
In 1996 Carol launched 'Charmer Charts' to train independent traders in technical analysis and became the first person to provide daily forecasts for the established traders on the LIFFE floor.
She returned to the floor, trading her own account, advising traders throughout the day and continued her appearances on Bloomberg, CNBC and Reuters financial TV where she provided her valued, expert opinion on the direction of financial markets.
