In the last post made on the US Stock Market on Sunday night, I noted that the S&Ps was moving up strongly, but had run into a resistance area around the 1970 level. A pullback into the 1940 level was anticipated (we went to 1944.50), and then the market rebounded, making a new rally high today. Despite the new rally high, we are still negotiating that 1970 area. Today's … [Read more...]
Follow-Up in the S&Ps
Yesterday, resistance was identified in the area of 1965 - 1970. Today, the market stopped it's upward movement at 1968.25. Today--marked A on the chart--was an up day. Although it was up, it also traded inside the range of the previous day. We had good volume, but the market remained largely range-bound. We could be seeing the market accumulating around support as we have … [Read more...]
Progression of a Top
I showed Daily Chart 1 of the S&P e-mini futures in a free webinar held by TradeGuider yesterday (Monday) morning. You can see that Monday's bar C was still in progress. We noted that we were likely creating a top and could expect at least a modest pullback. Here was the rationale: The daily chart had reached the Weekly Supply Line (red trend line) on Thursday last week … [Read more...]
Fed Day Trading
Fed Day trading almost always involves contraction of volatility in the morning session and expansion of volatility right around the announcement. Often, like today, the pick-up in volatility will trigger an afternoon trend. In yesterday's post, I highlighted my take on key resistance and support for today's trading. These are outlined in boxes on the 3,000 tick chart. We see … [Read more...]
Bullish Market – What Will Turn It Down?
The market--as represented by the S&P e-mini futures--has certainly been bullish. We have had a run of several up days or near up days in a row. The market structure has been conducive to a bull run and the run has been impressive. At some point, however, the current rally will end and we will see a pullback of some degree. What Will Turn This Market While I don't try to … [Read more...]
