*MARKET WATCH: The December S&P 500 index closed sharply lower on Thursday and below the 10-day moving average crossing at 933.39 confirming that a short-term top has been posted. The low-range close sets the stage for a steady to lower opening on Friday. Stochastics and the RSI are turning neutral signaling that sideways to lower prices are possible near-term. If December extends this week's decline, October's low crossing at 825.00 is the next downside target. Closes above the reaction high crossing at 1066.50 are needed to confirming that an important low has been posted. First resistance is Wednesday's high crossing at 1008.00. Second resistance is the reaction high crossing at 1066.50. First support is today's low crossing at 900.50. Second support is October's low crossing at 825.00. The Dow closed sharply lower for the second day in a row on Thursday and closed below the 20-day moving average crossing at 8954 confirming that a short-term top has been posted. Today's sell off was triggered by ongoing concerns that the economy is continuing to spiral downward. Technically, the rally off October's low appears to be a flat a-b-c correction, which underscores that the Dow remains very weak. The low-range close sets the stage for a steady to lower opening on Friday. If the Dow renews this fall's decline, the 87% retracement level of the 2002-2007-rally crossing at 8072 then the 2002 low crossing at 7197 are the next downside targets. First resistance is Tuesday's high crossing at 9653. Second resistance is the reaction high crossing at 9794. First support is today's low crossing at 8684.96. Second support is the reaction low crossing at 8143.ow that the election is over and Obama has won just as the market predicted I expect the market to retest the 52 week lows by weeks end. The system is looking to add to its short positions and suggest the Dow to go to 7,000 very soon. The VIX continues to remain high although it has pulled back from its all time highs therefore I expect the selling pressure to continue. *Today's Price Points ES (Emini S&P 500 Futures) Entry Point = Sell @ 904.75 Target 885.75 Stop 933.75 Swing Trade Signal = n/a 1st Resistance 938.25 2nd Resistance 971.50 3rd Resistance 1023.75 Intraday Support/Resistance = 919.00
Because the probability of getting the lower point target with higher cars is much higher than getting the higher point target with fewer cars. Letting the trade run is fine, but it is repeating the same trade over and over at a high win rate multiple time that leads to less stress and less market risk. Now multiply that by 52 weeks a year. The problem comes in with the psychology issue of have a point stop that equals 6k instead of just $150 though and that is where most fail. Baby steps and let it build is key.
need to test 95 again before decent rally, being friday an obama press conference, I don't expect much till then.