The potential rally I wrote about over the weekend did not materialize today.  Instead, it was obvious near the open of the US session that the market would cross the 1300 threshold that would cancel the rally. It is always important to have a game plan, but it is always equally important to know when that game plan is no longer functional.  This can anticpated in advance.  We … [Read more...]

Thursday & Friday of last week showed some bullish behavior by refusing to go lower.  Rather than continue down as expected by the 60-minute trend channel, buyers stepped in and held the market at the 1300 level.  This sets us up for a potential rally on Monday.  Watch the 1327 level.  The market may have difficulty there.  Obviously, a break below 1300 would cancel the … [Read more...]

Even though Friday's range in the S&P e-minis was fairly small compared to the last several days and was also an inside day, there were good trading opportunities. For the trader using tick charts and a momentum oscillator, there were four well-defined trade setups that caught solid moves during the day.  Two were long-side trades and two were to the short side. There is … [Read more...]

The recent rally exceeded initial targets and has been quite robust.  One way to measure the strength of a rally is by the closes.  Over the past nine trading days there have only been two closes lower than the previous day's close, and one of those was hardly a poor close.  Friday did close down, but the morning selloff was quickly checked and the market responded with an … [Read more...]

The expected rally discussed last week has reached it's initial objective.  We may see a little further upside today, as we are going into the US holiday weekend that kicks off the summer season.  If today is similar to most days-before-the-holiday-weekend, we will see an upside bias, lower overall activity on the day, and significantly lowered activity in the afternoon.  After … [Read more...]