I forgot to post the action points for Monday’s moves. Not much missed though, we stayed in a 30 point range and well not much of a range for traders to catch any direction.
Tuesday’s action: A break of 10740 should lead us higher to 10750. Base building at 10750 should lead us to play with 10800.
A break of 10700 could lead us to 10680. A break of 10680 should lead us to 10660. A breach of this area should lead to a steeper decline. I say this as if you see the last 7-day move from 10400, then a breach 0f 10660 would breach the trend line of this recent premature up move.
Interesting week as we are near some important levels. 10800 to 900 and then of course the heights of 11000 are within reach.
Do we fall lower from the current levels?
Are we to find problems with December highs?
Or do we make new highs and post a 'clear' breakout?
I don't have a 'definite' answer. I would definitely favour problems with 10800 area and a possible double top formation could be likely. Was Fridays rallying just a spike up could we have a spike down? Maybe.
Looking at the VIX, a market indicator, a downward direction seems to on the cards very soon. Actually the VIX is
screaming
at us to sell this market!!!!
If you do not take the current VIX reading as a 'sell indication' then please take it as a 'caution is warranted recommendation'.
We have an interesting week ahead, Good Luck!