Today's Outlook for S&P and Dow Jones.
Friday, June 18, 2010
by Carol Harmer of Charmer Charts
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S&P traded higher to 1117 yesterday then fell back to 1101. Overnight we have held 1109 and have hit 1113. Now this is good resistance and there could be a little topping pattern on the 60 min charts if we hold below 1113. We should see weakness then back to 1101/00. We would look to cover shorts on dips back to these lower levels. Only re-instate shorts if below 1100. If we do manage to break 1000 look for 1093/1091.
The other side of the coin is that we break 1113 and rise to 117/19. Now the market is quite overbought at current levels, so would be looking for any strength to be capped by 1117/1119.
Dow blipped slightly past the 10447 resistance and has come higher with 11461 the high. Today the 60min charts are extremely overbought, so would expect to see some downside moves with 10342 to 10305.
If we lose 10300 look for 10280/65 as your first stop. So we have resistance at 10454/61. If we can clear this resistance we are looking at 10560/65 to entice. All longs to be covered.
Carol Harmer has over 30 years experience of analysing and trading the world’s markets and is undoubtedly one of the most respected technical analysts in the world today.
Her career started in the early eighties, trading futures on the floor at LIFFE where she quickly discovered Technical Analysis as a way to maximise profits. She was one of the first traders on LIFFE to discover and study this form of analysis and quickly became widely recognised as an expert in its use as well as highly profitable.
This soon led to a position as Senior Technical Analyst for Midland Bank.
She was later head hunted for the role of Manager of Technical Analysis for Nomura Bank and then as Head of Technical Trading at Credit Suisse. Carol is also one of the first T/A's from a bank to join the STA (The Society of Technical Analysts) in the mid 80's and has trained and worked with some of the UK’s leading technical analysts.
In 1996 Carol launched 'Charmer Charts' to train independent traders in technical analysis and became the first person to provide daily forecasts for the established traders on the LIFFE floor.
She returned to the floor, trading her own account, advising traders throughout the day and continued her appearances on Bloomberg, CNBC and Reuters financial TV where she provided her valued, expert opinion on the direction of financial markets.
