Weekly S&P closed below previous week's open, there is a classic divergence also on weekly chart, I see weakness in other world indices. IMO it should have been a precautionary move to go flat this weekend. It's simply an opinion
I was referring to uncertainty which is based on reading a chart using whatever method that you use to distinguish buy from sell, strong from weak signals. If you see a sell signal, then what are you to do? Go long? Go short? Flat? Hesitate?
I agree JSS a controlled decline is possible, but usually its successive, meaning 2-3 days of 20 point losses on the SP. The first wave of buying will appear what is basically 20 points lower on the index around 1480. Since the 1st wave of buying or support is so close, the sellers wont give them the opportunity unless they anticipate breaking the 1st layer of support. Thats why we move higher into the range first around 1600 in the fall, when most everyone is looking for reasons to hit the market. There is too much congestion below here.
Trading a daily, especially weekly chart is not that easy using high leverage, so from that perspective I agree that to pinpoint a specific time to achieve perfect entry with minimum heat is very difficult. I personally see weakness in both daily and weekly charts, especially weakly, so I answered OP's question whether it is wise to buy before the close or wait until Monday I would not have entered into a Long position last Friday basically, if there was a hammer present with a long lower shadow then it could have been a different matter, you can't trust a trend to be your friend if there is a possibility of an intermediate change of trend present.
hey JSS, take a look at the this weekly chart, last week the market failed to make a new weekly low even though we closed a friday on the low.
More than 4 hours before it occurred, you picked the afternoon bottom in the ES to the minute, before it rallied 7 pts into the close. How'd you do that? Of course, you said the buyer would then need to jump out the window, but instead the buyer would be jumping for joy. So what's your next precision market call, so I can do the exact opposite and make $millions?
Yes indeed, but this week's bar is a typical reversal bar, is it not? ie failure to make new high and lower close. I am not saying that it will actually reverse/correct here, it might do so based on the reversal bar and a divergence, neither are straightforward to trade, nevertheless are signs of price starting to make a turn. It might, it might not. Also we don't know what exactly OP wanted to buy and with what leverage, if he was referring to futures then chances are come Monaday open he could be shaken out of his position royally.
Watch the nikkei and dax Sunday (U.S.). Watch the index futures pre-market, too. Then decide. There is fear right now. It has to do with the sub-prime CDOs. If those go to market and a "real" value is associated with them, look out below.
What about this one, first week of June put in a reversal bar, followed by a short squeeze 2nd week, 3rd week marking possible continuation of reversal. Is it still a strong buy here?