Which way will we go George? Which way will we go?

Daily:

                Indecision is the word of the day.  We closed just below the 10 day moving average yet again.  We started out the day moving up before slamming into a former support level at 1215.  Immediately afterwards we started moving down and bounced off of the 1180 area for a rough trading range of 35 points on the S&P 500.  We eventually closed almost dead even indicating a degree of indecision in the markets. 

                The ADX is still doing the same thing it has been for the past week.  The Di- is still moving down, the Di+ is still moving up, and the ADX is trending sideways.  MACD is still moving to a cross with the histogram putting in another uptick.  However, the stochastic could end up rolling over at the 50 line and trend back down.

                We could still move higher but I think it will be short lived due to resistance at the 1230 level and the 20 day moving average which would form major resistance.  If we move up it may end here.  Watch the 1230 level closely for signs of reversal.  If we don’t move past 1215, we may move back down and challenge the 1180 period yet again.  If we break through the 1180 period I think that would be a good sign that the recent rally has failed.  If it moves through this level sit on your hands.  We won’t have a clear image of what to expect until we get through either the 1215 level or the 1120 level (I know, a 100 point swing).

60 min:

                I’m not very good at interpreting wedging/pennant patterns.  They are very difficult to get a clear signal out of because it depends on where you draw your trend lines as to what signal it gives you and the direction you get out of the trend depends on whether you break out or break down.  Simply put, we either have a bearish rising wedge which has the potential to break down and hurl us down to or through the 1180 level.  Or, we could have a bull pennant which would move us up.  If we move up we could see that 1230 or 1260 level (a vagueness rating of 30 points, I know and I’m sorry.  There just isn’t much that is clear out there right now).  I feel that I have fallen a little short today and would strongly suggest you check out Ron Walker’s site http://www.thechartpatterntrader.com/