As is often the case, the narrow range day painted on Wednesday led to increased volatility yesterday. Several traders emailed with fine examples of trades made in the weakness. Nice job! In Deep Practice last night, we discussed this weakness and what the likely resistance levels would be for yesterday's afternoon rally. You can see those depicted in the green bands and … [Read more...]
The Week Ahead
After making all-time highs last week, the market as represented by the S&P futures (ES), is pulling back. I think this will be an interesting and telling week. On higher time frames, the market is overbought. That being said, the higher time frames are also in clear and strong uptrends. How the market acts this week will tell us whether the current pull back is just a … [Read more...]
Market Drives to New Swing High
I was anticipating a pullback in the US Stock Market this week. I had seen some weakness in the market as described in this post (click to read), but that did not materialize. Instead, the market pushed up and drove to a new swing high. Game Plan & Routine Coming into the market's US morning session yesterday, I was looking for a short opportunity. My game plan was to … [Read more...]
Sell Off in US Stock Market
We've been expecting this sell off for the past few weeks, and have been discussing it in previous blog posts and in Deep Practice. We've had two strong trend days to the downside over the past two trading days, breaking down below the 1395 pre-election support level. Since we are now oversold, we may see the market try to hold in this area tomorrow. If it does and that … [Read more...]
US Stock Market Weakens. Next Moves.
Friday saw some strong selling come into the US Stock market. This was not constructive for the market. Does it mean we are now about to go lower? Based on the current picture of supply and demand, I think the odds favor lower prices. Let's take a good look at the daily bar chart of the S&P e-mini futures market (ES) since early September, and then apply the Weis Wave … [Read more...]
