Today we saw further downside consolidation, as we expected.  I noted last night that more consolidation was likely and that if the market did start to sell off today, it could push down to the 1400 level, then the 1395 level.  It went to a low 1392 in a small selling climax before it began to firm up in the 1395 area. Today brought out an increase in volume.  You can see it … [Read more...]

In yesterday's post, I noted that although the market rallied strongly the day before, a pullback was likely.  I said watch for a pullback into the 1405 - 1400 area.  You can see that post by clicking here. We did indeed have a pullback to 1405.  You can see the pullback on the daily chart.  Also, the S&Ps dipped underneath yesterday's pullback low and then pushed back … [Read more...]

I just came back from a conference in Boston on new advances in psychology.  It's was very inspiring.  I learned a lot of new things in the field that are applicable to our trading.  I'll write on some of these in the near future. We had another day of rally yesterday in the S&P e-Mini futures (ES).  We see very good price movement, reaching new highs on the year.  Note, … [Read more...]

As I detailed last night, yesterday's low was indeed the key level for today.  The pullback this morning went underneath yesterday's low, then, as expected, rallied higher.  A nice spring.  If still long, consider taking at least a piece off as we enter into the noon hour.  It is Friday after all.  For heartier souls, 1395 area would be significant resistance.  I don't know … [Read more...]

As we anticipated last night, we saw additional follow through to the downside today.  Today's trading was not as clear as yesterday's market, but trades were available, nevertheless. After the market broke yesterday's low, the two-day low (which was a bit lower) became the key resistance level.  A short trade on the 3,000 Tick chart around 10:00 Eastern Time (first red … [Read more...]