Helen and I have been on a little vacation taking time off from the blog for some early winter hiking in New Hampshire. Thanks to all who wrote in saying they missed the blog.
After a good strong rally, it looks like the S&Ps will try for a pullback. You can see on the daily chart (not shown) that it has been hard making upward progress after the big up day on November 30th. This is not surprising. The early part of the month tends to have setbacks while the end of the month will tend to rally.
Today was a good trading day. Not all days in the S&Ps make for good trading. On lots of days we can only pull out a few points if we are lucky. But today was one of the better days. Let’s take a look.
Here are the 9,000 and the 3,000 tick charts – two good time frames for intraday trading the S&Ps. We see the market rally up overnight back to yesterday’s high, and then struggle to hold the high through the US morning session. The Weis Wave gave an excellent signal of the supply coming into the market during the morning. It looked as if the market was holding yesterday’s high and poised to rally further. But the Weis Wave told the true underlying condition of the market. The very small upthrust at 1 was the entry for a good push down.
Momentum clearly came into the downside as highlighted by the 3-10 Oscillator. On the pullback to 2, we see a textbook oscillator trade on the 9,000 tick chart. I like to use the 3,000 tick chart for entries in a situation like this and, as is typical with this combination of tick charts, the 3K tick did not disappoint. The small rally became overbought and offered a hidden upthrust as entry. This is the way to use a combination of time frames.
For tomorrow, I am anticipating further downside. I wouldn’t be surprised to see the market test the big November 30 up day over the next few days.
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