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Today is the last trading day of 2014. I have shaded the last 12 months on the chart above to show at a glance what 2014 was all about from a trader’s perspective. An amazing five out of the last twelve months were outside bars–so there were plenty of stop sweep/reversal opportunities in 2014 and we identified all of them right here. 😉
The November monthly bar is what has been in play recently…
The last big stop sweep/reversal move was into the stops under the November low at 1988.50 followed by a scorching squeeze back above the November high at 2068.50, which is where the unfortunate bears who missed the turn at the reversal above 1988.50 have been pinned since 12/19
The pros have had price locked in a tractor beam since the post-election/pre-Christmas year-end bonus sweetener play ended.
The last item on my recent checklist was a higher close on the December bar than November’s 2059.50. Let’s see if we get that today-although at this point, they have likely squeezed about as much as they can from the year-end move.
Counter-trend traders love to use the prior close as an entry trigger, so if we were to get selling today 2059.50 would be the line to watch.
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Moving in to the hourly bars to fine tune things a bit…
First support underneath current price is at 2072, then there is an open hourly bar gap at 2063.75
The last ST pivot low is way down at 1961.50, so at some point we are likely going to need to see a higher ST pivot form. The recent sideways tractor beam action makes the minimum ST pullback requirement just 2071 from the current price.
For today, anything above 2059.50 is a yawner
We’ll take a closer look at the configuration and trading setups after the New Year, once this year-end bonus pinning is completed.
Happy New Year!
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