More info $SPX ...... http://www.projectstreamer.com/users/cb1618/vid2252009/vid2252009.html http://www.freetradingvideos.com/vlog/default.asp?category=1
Strategy for tomorrow. Wait for pullback between 755- 760. Buy on bounce with target of 780. Take partial and hold rest till 824. Ratcheting stops up along the way. Provided VIX and TRIN remain bullish. Please critique. Thanks
$VIX did a complete 360 degree turn and headed south (bullish) in today's trading session. The open 52.50 and the high of the day is 52.56...+.06 difference and the low 44.28. The close is nearly below 45.00 at 45.49. The closing candle is a large bearish harami. The fib retracement is below the intermediate (46.76) area. The next target will be a close below the 20 sma (44.98).
With no test of yesterdays low today, we remain with a KNOWN weak area of support at the 743's-740 delta net long holders zone. After some rotational consolidation in the early part of the day we were able to get a decent run to higher pricing levels. As I have stated earlier in this thread, the sellers of this market will seek HIGHER pricing levels to re-enter new positions again for any potential retest of the new yearly low.....today they created that opportunity. I sold todays rally after the break above the consolidation area and I am currently holding portions of positions now from the 771's on up to the 773.50 level.......I have covered positions to this point at 769.00 and 767.50......my next targets are at 764.00 and then 761.00 (once 761.00 is filled I will have 50% of the position covered). With any trading below the 761.00 level I will cover additional positions according to the price action. The plan for this building position trade will be to have a portion of this position still in hand with any test of the 740.00 level.
We had no retest of yesterdays high in the AH session and I have had my targets at 764.00 and 761.00 filled now......I have also set another target at this point for 756.00
OK.....and in a terrible jacked economy you can almost always expect additional bad economic news while selling into the trend........with the housing numbers out I have just hit my next target at 756.00 I will set another target at 751.00 where all my 771.00 entries will be covered and I will then only be holding my remaining 773.50 short entries (holding last 50% of those entries). My next target for roughly 16% of the 773.50 entries will be set at 743.50 which will then leave the last 33% of that position on for any new low that may be made in the days ahead.
I'm paying close attention to the bear pennant were inside of. 748 is about the bottom of that line, so I imagine that will provide support today.
The only real support to this market at present is a few pockets of resting held LONG inventory from 745's on down (main area at 743's to 740.00).......any new test of this area will not take much selling to break through imo.