Wednesday, February 15, 2012

The Yearly pivots stopped the far

Today, the YM futures hit the yearly R1 pivot point today and sold off. I'm looking for a pullback to the 20 dma tomorrow. Let's see how that plays out. Tops are a process, not a 1 day event. I still think we will see the high for 2012 in March and then down hill the rest of the year(per the 2012 Bradley model). Today could be the left shoulder on a head and shoulders pattern, that could play out over the next month or two. The Yearly R1 Pivot point on the Dow Jones Index is 13,256. That is my target for March.

Also today, the NQ futures hit the yearly R2 pivot point and the monthly r2 pivot point. When you see a confluence of 2 different pivot points(yearly/monthly or weekly/daily) that are close like this, it usually is strong resistance(if price is moving up) or support(if price is moving down).