bluesdog thursday, page-78

'tis interesting that on the hourly for my IG chart of the SPX500, the "fail" level for SPX was just on the 200 period MA.

On this timespan, price is still above the 21MA, but currently toying with it... (actually fallen below now after typing this longer than expected misssive)

Personally I am carrying a short bias on our XJO (and a short position), price in my opinion could go either way from here without negating the greater "correction" downtrend

Back to the SPX:

On the Daily I have an "expectation" that we could see at least another 4 points drop before hitting resistance,

And I am very interested to see a head and shoulders pattern occuring on the Hourly stochastic for this instrument, which can suggest taht we could see this indicator go all the way to the overbought region for this time span before a bounce of any significance resumes.

I would also like to suggest that the US futures really need to be in negative territory PRIOR to their open for them to have a green day.

Once we have US cash open I will be very interested to see how price reacts to the level approx 14 points above where it is now, as this is the location of the 13MA on the daily, and IF we are in a downtrend on the daily timespan, a rejection of this level is a valid price movement.

On top of all this and going back to the XJO, i was watching depth on the spi and orders going through after cash close, and there was a lot of "off screen" selling (that is orders coming in and taking out bids, not sitting in the depth queue) of reasonable size with a few 10, 15 and 20+ contracts hitting the bid side.

This was at the "real SPI" level of 3814.

I have seen this kind of action before, both off screen buys and off screen sells, and despite overnight fluctuations the large contracts that were "force" bought and sold at this level ended up being in the money the following day... can't say it is guaranteed, but watching with more than just bemused interest.

Anyway, time will tell, so far price is working in my favour... and we shall see how we go through the night and what the morrow brings.

;)