Forum Clusters 110701.xlsx
“Clap Clap!” to the market makers and their ever improving algorithms. Not only did they succeed to maneuver masterfully between floor clusters during their accumulation programs from the bottom, but they made sure to close the quarter on the strongest support clusters we’ve seen in years on all indices.
Thanks to the robots we could end the quarter in their good company and with the large players.
Like anticipated yesterday, cheating into the potential fresh monthly, quarterly and half-yearly floor levels, we now have a boulevard of dreams ahead of the bulls and a bumpy road to hell for the bears.
I don’t think the next cluster chart needs much comment. The bears will have a very hard time trying to break below this first heavy strong support cluster, while the bulls can easily buy every minor dips into the first resistance cluster. We are right at the daily downtrend line from the top and at a 61.8 % Fibonacci retracement, so a minor pullback or consolidation is likely today or next week. It’s certainly the worst reason to sell as long as IWM closes daily above the 50-day moving average.
The same outlook is in place for both SPY and QQQ. Note that QQQ closed around WR3 (57.02) and has a 95% probability of having made its high for the week. But starting next Tuesday the sky will be clear up to YR1 (59.02).
On the other hand, GDX’s cluster outlook deteriorated substantially overnight and is now facing two successive nearby resistance clusters with a total weight of 33! Total support is only one-third of that with a total weight of 11. All I know is that if the crowd wants to become emotionally bullish on GDX here, they won’t get any help from the market makers who can make much easier money on the overall market indices right now. Billy
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