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Asian-Pacific Stocks: Which Country Is a Bull for 2012, and Which Is a Bear?

The S&P 500 is compressing between a shorter-term and broader consolidation pattern, so it could make for an interesting breakout resolution yet to come.

Let’s take a look at the bigger picture of Market Structure and then zoom-in on the intraday structure to note key reference levels.

First, the broader picture starting with 2011:

To recap, when we say “Market Structure,” we’re referring to the progression or sequence of price highs and lows.

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As of yesterday I've been leaning  back again towards the bearish side in the stock market as I think we will see a retest of the recent lows.
Above is a 60 minute chart of the NASDAQ composite and in the lower panel is the stochastic indicator. As you can see the market is in a downtrend and the way to make money in downtrends is to short the rallies. In my comments from yesterday I said I

Do you know how to quantify price structure?  It’s not a difficult concept at all, yet many traders miss the benefit of taking a moment to assess objective price structure in the context of a developing trend.

Doing so allows you to assess objectively the next likely swing, and thus the most probable trading strategy to take.  Let’s take a brief moment to review the basics of identifying price structure on multiple timeframes.

Let’s start with a long-term weekly chart of the Philadelphia Housing Index: