DAX & FTSE spreads

Dusting off my weekly chart of the DAX 30 spread market, it seems that we may be finding support from the top of the main down channel from the all-time high, as well as from the 50% fib retracement from the May 08 high.



And a zoomed in view on the hourly DAX



FTSE is at a similar juncture but looking weaker if anything

Hey, STUPID!

ZeroHedge has come up with a rather droll new sovereign debt index based on the CDS premiums attracted by class dunces Spain, Turkey, UK, Portugal, Italy and Dubai.



Nice inverted head and shoulders pattern you got there, Tyler - that baby is going to the moon!



[h/t - Guido]

SPX spread market - end of wave 1?

So most folks are saying that we are very probably into wave 3 at this point, maybe even on the verge of wave iii of 3, the most brutal part of the down-swing.

Me, I'm not so sure - if you look at the continuous /ES or the SPX spread-betting market that we have here in the UK, then it's fairly clear that the actual high in the market took place on Jan 11 out-of-hours - days prior to the intraday high in the SPX.

This produces a different count that suggests that wave 1 might only have just come to an end at Friday's close. Clearly the implication here is that we are going to get a sizeable bounce in Monday's trading if this is correct.

UPDATE: always check the weekly... just noticed, we can see clearly how we topped very close to the 61.8% fib retracement from the May 08 high - will we now find support at the 50% mark?



Sunday night bounce music for the SPX

McClellan Oscillator Diverging...

Option Addict has a timely post pointing out the current NYMO divergence.

Cable - triangle completing?

Cable. Been talking about a monster triangle this week. We have an under-throw and looking at this hourly chart, you could see a completed zig-zag (5-3-5) abc move down from the Jan 19 high for wave E of the triangle. As things stand, wave c is 1.618 times the length of wave a.

Whatever, I'd say if this is going to play out, it needs to bottom today.

S&P spread

Short the S&P via spread bet here.

S&P E-mini

The ES is sporting a five up after the US close tonight, even though most of it occurred outside of regular market opening hours - should see a retrace from here, then, but the low should hold.