Yesterday, I noted that the 1832-28 level was likely to be strong support. The market came down to 1831.50 an hour after the US Open and set up a lovely Spring of the trading range that had developed in the overnight trading. The day was range-bound, and this is the second day in a row we have had narrowed ranges. Watch for a strong move tomorrow. … [Read more...]
Archives for February 2014
Next up on the S&Ps
In the last post for trading on Thursday, February 13 (click here to see that post), we suggested that that market could fall to 1805 to 1800 and then find support. The market fell to 1802.25, found support, and rallied to new monthly highs. We saw a continuation of that up move on Friday, to a high of 1838.75. So, what's next? Next Up Recent highs created on December 31, 2013 … [Read more...]
Rally Dying?
Or is it just a pause? As we await another winter nor'easter here in southern New England we are trying to stay warm and figure out what the likely next move of the market will be and how much snow we will get. The weather seems easier. It's been very cold here lately. I awoke this morning to one degree above zero (that's -17.22 Celsius). It's what we call pretty nippy. … [Read more...]
Big Morning Up
The S&P futures had a good run up this morning. Just before the US Open, the market tested the overnight lows (T) and took off. You can see the demand that came in off the US open, confirming the test (D1) and indicating the overnight high would break. The short pause here had light downside volume, opening the door for buyers to come in, and they did (D2). Buying … [Read more...]
The Day After A Trend Day
One of my favorite days to trade is the day after a trend day. Yesterday was a big trend day down. Sometimes, it is hard to get aboard a trend day. Yesterday, there were several opportunities to enter short, but even so, traders often report that trend days can be frustrating events. Trades are taken off too early and sometimes it looks as if the market is bottoming, but it … [Read more...]