We saw quite a dramatic sell off in the US Stock markets today. The S&P e-minis fell over 40 points. We were looking for a push down in our weekly game plan. It rallied a little higher than anticipated, but then we sure got a push down in classic trend day market action.
Today’s strong move down obviously changes the idea that the market would find support around 1490. Before today, I was expecting a trading range to form, as this would be normal market action. That is less likely after today.
I would expect the market will trade sideways tomorrow morning, and maybe longer as this move gets digested over the next couple of days. Any rally back up into the 1495-1500 area is likely to be short-lived. Next support is seen on the weekly chart at the 1468 level.
Next Tuesday we will be starting a four-part series on the mental side of trading. This is designed to give you specific tools to increase your performance in your trading, based, in part, on a sport psychology model used in professional sports and other human performance activities that I have adapted for trading. I presented this material in my weekly Deep Practice group and the response was very postive from this group of traders. You can learn more here: Winning Trader Psychology
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