As we anticipated last night, we saw additional follow through to the downside today. Today's trading was not as clear as yesterday's market, but trades were available, nevertheless. After the market broke yesterday's low, the two-day low (which was a bit lower) became the key resistance level. A short trade on the 3,000 Tick chart around 10:00 Eastern Time (first red … [Read more...]
Intraday Trading
Last night, I noted some changes in behavior in the stock market as represented by the S&P e-Mini futures. I said that I would be looking for downside trading the next day (today) and that the key level to watch was yesterday's high. You can read that post by clicking here. Today's Trades We can see that yesterday's 1405 high was indeed the key level. Being unable to … [Read more...]
A Trader’s Excellent Question
A trader sent a very good question last night on a recent post. Since he sent it via email and since it is such a good question, I decided to make it into a separate blog post. You can see the original post that he is referring to by clicking here. In that post I noted a location for an aggressive long trade. I've posted the chart he sent with his question along with my … [Read more...]
Stock Market Level to Watch Tomorrow
We are at an interesting place in the stock market right now. Certainly bullish. We have been rallying without much pullback for several months. In fact, on a weekly basis, we have not had a down weekly close since the first of the year. It's an impressive market. We could be in for a down day tomorrow, however. Yesterday's action gave us a lower low and a lower high on … [Read more...]
Intraday Trading
Today's S&Ps (ES) didn't give too many opportunities to trade. Yesterday's high figured prominently in early US trading, as it often does. The overnight market sold off sharply (A) after pushing above yesterday's high, making a new high. Usually, when we see a sell off like this, we would expect the market to move back up to test yesterday's high with weakness on the … [Read more...]