Signs of Further Weakness Ahead

• stevenplace
• February 25th, 2010

After a very strong bounce from those levels from early Febrary, we’ve been in a range between 1092 and 1113. There’s still a lot of uncertainty in risk assets, especially with the news coming out of greece as well as some other intermarket themes.

A potential chart pattern is setting up on the futures, a head and shoulders pattern.

If we do get a breakdown of the range, the expected downside move is to about 1075. That’s also some weekly pivot levels and some other levels of technical support. I’ll be playing short side momentum on a breakdown and then start nibbling on some longs if the ES tags that target.

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