It’s a reference to a type of music – chilled out, laid back, smooth and almost hypnotic. Zero 7 has made it famous. Check out the video, but it’s not the music that’ll hypnotize you, if you know what I mean.
I’m not at all surprised to see this move back into the 1,280s. If the daily chart was an intraday chart, I’d be salivating at a short stab – benchmark candle at resistance, followed by a retracement of 50-62%. Whammo.
The setup would be there and would work a high percent of the time. HOWEVER, this is a daily S&P chart, and there is already a questionable chance that we trade any lower. Amazing. Futures are at 1,286 tonight and if any overnight strength lifts us over 1,290…game over for the shorts. Might as well book plans for 1,300 – 1,315 in the short term.
While that’s not a problem and we trade what we see, I think we are kidding ourselves to think that a 1 day correction is all we need. It’s simply not healthy and the longer we delay the inevitable the harder the beat down will be when it gets there.
Makes sense, though. Commodities are flying (except for gold and silver) and the dollar just continues to lose strength. Guess more imbalance in the Middle East, or somewhere else, is what it will take.
Anyway, we play the hand we are dealt, but watch overhead resistance closely here at the 1,290 area. Bears may still have something to say about this, and Goldman was a seller into today’s close.
- R1- 1,290
- PP- 1,276
- S1- 1,269
- S2- 1,255
And now I’m going to chill out with some downtempo from Zero 7. Should have some nice dreams tonight.