On Thursday night, I did my usual homework routine.  My conclusion of the markets for the next day (Friday) was that the odds favored a move lower.  I based this in part on what looked like initial shortening of the thrust in the Russell 2000 futures and the fact that each of the major indices had rallied into the middle of the last congestion area before supply hit the … [Read more...]

Yesterday the markets had a good rally back up and into the middle of the trading range that formed from mid-February to mid-March.  The gap areas that had remained from the March 10th drop were filled.  Overall, the market is showing strength.  Sellers had the opportunity to take the market lower two days ago (March 23) but couldn't. Nevertheless, we may be in for a … [Read more...]

Chart Reading Mastery Chart Reading Mastery is a course  that I teach to traders who want to learn to read the market by its own actions.  It is heavily based on the Wyckoff Method adaped to today's markets.   8 Weekly Sessions We meet on the internet on Wednesday nights for eight (8) weeks after the US markets close at 4:30 PM Eastern Time (New York Time).  Each session runs … [Read more...]

Yesterday, the S&Ps gapped open nicely and held gains above the 1287 level.  I pointed out on Sunday night that should the market trade above and hold the February 24 low (1287), that it had good odds of trading higher.  It rallied to 1296.25. Trading yesterday occured mostly in the overnight session.  Most of the day was spent in consolidation.  Because of the … [Read more...]

On Friday, the S&P futures (ES) gapped open up above the highs of the previous three days but couldn’t hold.  More importantly, it couldn’t break above the February 24th low of 1287.50.  On March 10, the S&Ps broke out of an apex to the downside and continued lower until March 16th to a low of 1243.25.  We had the largest volume day on the 16th since the days around … [Read more...]