Here is the wave chart for the e-mini day session over the past two days. As I said earlier today I think the trend is now upward because there was a clearly defined demand shock earlier in the day. The market is now near yesterday's high and we have just seen a high volume bar (red arrows) followed by a modest further advance on declining volume. Since the high volume bar occurred so near yesterday's high - a level that should be temporary resistance to the up move - I think this bar is climactic in nature and that a reaction is now underway.I expect this reaction to drop the market about 10 points or so, to the higher of the two purple dotted lines. If this proves to be too optimistic the worst we should see on the downside is the lower dotted line at the 830 level. I think this market is now headed for 900 and higher.
3 comments:
US dollar index likely headed below 12/17 low over next three weeks...shocker dollar 'collapse' would drive metals to new highs, however temporary.
this is a great site...honestly I think day trading is a zero sum game for most, obviously you guys are the elite. This is a very choppy market as one might expect given how critical the 8000 level (dow)is. the bulls have defended it aggressively. my experience says that the longer it sits in this range without a significant move higher the bears will eventually gain momentum ie the trend is your friend. should be interesting.
I feel that much of this rally is short covering.
The market pattern of selling before the Unemployment Report has become too predictable. Traders got short and now the big money is putting the squeeze on.
Market would pull back near the close.
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