Consolidation pattern

Last week the indexes didn't make new highs on the new moon, but the Dow futures did. Also last week, the weekly R1 pivots where the highs and weekly S1 was support. The consolidation pattern continues! For the past 30 days, the best way to trade this sideways consolidation is to short Dow 10500, and cover at 10250-10300. Or buy 10250-10300 on pullbacks and sell 10500. That pattern will probably change soon. The 50 day moving average below(blue line) at 10175 and the monthly Pivot is the next support area. There are open gaps at 10450 and at 9978. That's the trading range I am looking for this week 10450 - 9978. Tuesday we have GDP and existing home sales.

Citi hits MS4

Buyers showed up yesterday when CitiCorp (C) hit the monthly S4 pivot at $3.07(blue circle on the green line marked s4). Looks like a buy to me if $3.07 holds. I'm long at $3.12 with a $3.00 stop loss.

S&P this week

For the past several months, on the new moon, is the day the stock market would make new highs, each month. The December new moon is this Wednesday the 16th. This coming week is also quad expiration. I still think we'll trade between the Monthly r1 at 1125, and the monthly pivot point at 1072 this week. Things will get very interesting next week!

Gold 50 dma

Gold has fallen almost 10% in 8 days. The 50 day moving average(blue line) is very close at 1104 on the Feb 2010 futures. I think gold will find support there this week, and bounce back up to the Mpp or 20 dma(yellow line). If not, watch 1093(Ws1) or 1085(MS1).

Euro slide continues

The Euro has taken a beating the past few weeks, as the U.S. dollar shorts get squeezed. Look for support this week at 1.4500(WS1), and then at 1.4407 on monthly S2.