Eyeing New Long Entry

What an interesting week it was last week. It is rare to see the market fall apart on an OPEX week. We held up until almost the end of the week before finally succumbing to selling pressure/lack of buying to end the week at the lows. 

Our Odds Indicator went on a shorter-term type of sell signal on Friday at the open and because it is a shorter timeframe type of signal, I am looking for an opposing buy signal sooner rather than later. Whenever this happens, we will look to cover the shorts and go back in long. There are a lot of moving parts here for a new buy signal so we will have to take it one day at a time and see how it all plays out. I am looking for support in the 3700 area and maybe as low as 3650 before a possible new buy signal triggers. 

However, IF 3625 area fails to support the market, then something bigger may be playing out to the downside.  For now, we hold on to our short trade and wait for our indicators to tell us when it is safe to get back in on the long side.  Weaker internals and the Odds signal together resulted in the market finally selling off into the end of week.

Looking at zones and pivots, grey zone resistance is at 3767-77, 3815-3824 and then at 3842-53. Support is at 3742-32,  3704-3695, 3680-71 and at 3656-47.

For Tuesday, daily pivot is at 3762.  Resistance R1 is at 3782 and R2 at 3818. Support S1 is at 3726 and S2 at 3705.5.

Options data is more or less on the bullish side. Internals were bearish to end the week. Price action is short term bearish, medium term neutral and long term bullish. Our Odds indicator went short Friday at the open and the Composite indicator did the same at the close. We closed our longs on Friday before the market dumped and also opened a short trade via the Primary. 

For anyone interested, I have written more about the Odds signal and the powerful nature of this signal that works in ALL types of markets here - LINK

All the best to your trading week ahead.

Princely Mathew hosts The Smart Money premium service at ElliottWaveTrader.