Market Forecast for 10-03-12

Many of the major market stock indexes are looking like they are about to break out from their triangulating patterns. The S&P500 has another buy/sell pattern breakout. The hourly chart has broken to the upside, but the 240 and daily have not, so they could still go either way. However, since the 60-minute is already started, the odds tilt to the upside.

Since time is of the essence,  use the charts' red horizontal manually drawn lines for your buy, breakeven point and profit targets 1 and 2.  I recommend placing both buy and sell breakout orders, since if one side is a fake-out, the other side usually wins, which gives you a very low risk trading opportunity today. USE GTC orders and cancel if not filled in 3 days (not likely).

The weekly, daily, 240-minute and hourly S&P charts are provided below.

s&p500 weekly chart

sp500 daily chart with forecast

s&p 240-min chart

standard and poor's hourly chart

The daily chart for the NASDAQ index is also provided below.

nasdaq index daily chart

The Aussie and HK index appear in their topping stages over the next few sessions for this leg up (see both charts below).

aus200 index

hang seng 40 index - hong kong

EURAUD: had a super nice breakout to the upside. Hope you profited from it. This currency pair hit all of our profit targets on the long position from the daily charts, and it looks now as if the resistance at the first long-term Andrews Upper Pitchfork resistance line appears to be holding. We now have a 60-minute triangle pattern sell (and potential buy) breakout signal in the works. Place both orders below in case either or does not occur:

ACTION 1: SELL 1.2620 stop to open, use 1.2639 stop loss to close position and move stop to breakeven at 1.2604, exit 1/2 position @ 1.2571 limit, trail a stop to 1.2305 limit exit or OCO exit at your trailing stop. 
 
ACTION 2: BUY 1.2651 stop to open, use 1.2626  stop loss to close position and move stop to breakeven at 1.2662, exit 1/2 position @ 1.2678 limit, trail a stop to potentially 1.3230 limit or exit OCO or exit at your trailing stop.
 
The downside breakout is far more likely today (see Euro-Aussie weekly, daily and 60-minute charts below)….
 
euro aussie pair weekly chart with analysis
 
euraud daily chart
 
euraud 60-minute chart
 
Please leave your comments below.
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