Forum Clusters 111202.xlsx

The IWM robot could enter a new long position at 73.14 in the lower end of the consolidation day’s trading range while the day’s money flow strength was just average. The stop is now at 68.97.

All the strong floor support confluences remain potentially active just below the entry price and should temper any aggressive selling raid. Further support could be found at the close on the declining trendline from the October 27th top which was also the much commented resistance of the triangle that developed in early November. Even more significant was the close above the 2-day VWAP ( blue line at 73.10) which means that the average buyer since Wednesday’s gap up opening is above break-even and this remains a market controlled by the bulls. Notice how Tuesday’s consolidation also found support at the 2-day VWAP. Weekly R3 (73.67) capped prices yesterday and remains the only serious resistance for Friday. It won’t matter anymore next Monday with the new weekly pivot levels.

The IWM robot found no edge for entering a new position today and is neutral. This is not a sell signal for the existing position which must be held. With neutral settings, risk-adverse leveraged traders might consider booking some leveraged profits on strength today.

The GDX robot is in cash. Please read Pascal’s comments on the new GDX robot evolution.
Billy

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