In last night’s post (see that post by clicking here), I suggested that we look for the market to hold around Friday’s low and look for a rally to the 1830 level in the S&P e-mini futures. The Asian and European sessions saw buying above Friday’s low and then rally. After reaching a high of 1832.50 at the US open, the market had an UpThrust on light volume and ran down to the 1819 level mentioned as some support yesterday. The market held there and did eventually Spring Friday’s low, but the Spring did not produce much of a rally.
The daily chart continues to look weak. Any rally is likely to experience resistance in the 1830-1835 area. Near support comes in at 1815-1812. Farther down, 1800 would be a lower support level.
Bar-By-Bar Market Analysis
No one can predict what will happen in the markets, but we can get a good idea of what is likely by learning to read the primary language of the markets: price bars and volume. We’ll spend two full sessions on this important topic on January 22nd and 25th. If you have been struggling with indicators or have always wanted to be able to look at a chart and read it by its own actions, you might consider this webinar. The sessions will teach you the fundamentals used by successful traders. Designed for both experienced and new traders. Detailed information and registration can be found here: Learn the Primary Language of the Markets
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