Thursday, April 4, 2013

Fibonacci Ticks 144-6765

S&P 500 Futures shot up at the open riding the 60 period Simple Moving Average and 110 period Exponential Moving Average on the 144 Tick Interval. Clear divergence was apparent at the highs with the Ergodic Oscillator rolling over first. Price found a bid at the 1550 level and retraced nearly .618 of the prior high. A double top formed at the retracement high and prices declined steadily through lunch. Again, clear divergence at the lows, as the TTM C Wave began to turn up early and at the final low print the TTM A Wave quickly retraced and went positive. Once prices cleared the overhead resistance of the MA's on the Intermediate interval Tick charts prices took off to the upside; However, on the 6765 Interval the A Wave was never able to completely clear the zero level. The rally off of the lows was ignited by short covering, again weakening the Market Internals. Prices rallied into the close, but are barely holding their respective Moving Averages. It will be interesting if prices began to decline prior to the weekend or if this coiling formation on the TTM charts will hold. It is only a matter of time before the break lower, trade accordingly, and expect over-extension both ways. Market makers and smart money are making fortunes on the volatility. Yes, volatility-- Range has been quite wide on the Weekly Futures Options: tripling their value and reversing back in a matter of hours. See my latest video, where we bought 3 put options at $2.00, that went up to $4.50 at the bid. Then all the way back to $1.60 at the close! Amazing!