Forum Clusters 111214.xlsx

Sorry for the shorter and delayed posting, but I unexpectedly had to help a cousin in emergency situation this morning and couldn’t complete my normal routine.

I wouldn’t dare to say that Santa Ben is actually Satan Ben, but it is clear that the FOMC announcement missed delivering the catalyst that could have morphed an improving market structure and consolidation into a new rally.
IWM is now on the brink of a steep decline if the last lines of support confluences break. These lines are Monthly pivot (72.00), Yearly pivot (71.84), 50 dma (71.66) and Quarterly pivot (71.25). If such an important cluster doesn’t attract fresh large buyers our initial robot trade is probably toasted and the trailing stop is conveniently positioned at 71.02.

An encouraging signal comes from today’s robot settings and edges which are giving the green light for a secondary long entry at a limit price of 71.96.

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Talking about the brink of a precipice, it is what describes best the precarious fate of GDX if it falls down to the next support clusters. A short position was entered by the GDX robot at 55.96 and the trailing stop is at 58.77. No secondary entry for Wednesday is advised. GDX is used to overshoot the Weekly S3 (54.20) but it is indicative of a much oversold level for this week.
Billy

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