On the Radar 10/20/2015

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Posted on Tuesday October 20, 2015

Personally, I still don’t see much on the bearish front. I remain very much on alert for a reversal of this 4th Quarter move up here at resistance. (200DMA, 61.8 fib from July 20th high etc)

However, until I see price action deterioration, I am not shorting a damn thing. My job is not to pick the top of the market, but to be on the right side. Have I reduced my long exposure a bit, sure, but that does not mean I am bearish, I’m just managing risk here at resistance.

However, at this very moment the price action remains bullish to neutral (not bearish), despite this pause at the 61.8 retracement.

Do we sell off tomorrow? Maybe, but a 200DMA test  is easily as likely.

All that being said, a scenario that is on my radar is shown below. A potential H&S forming under the surface. Still so much work to do, but it is potential and is something I will watch for.

A rollover here, could take us down to fill the 1951 gap, so I will keep it in mind.

 

 

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