Wednesday October 13th Review and Analysis...

The market opened up with a gap up out of balance and out of yesterday's range completely, setting up an imbalance from the start.

We had an Open - Test - Drive open with price pulling back to test the high of yesterday at 1169. Sellers unable to push price below that price level coupled with price then breaking the overnight or Globex highs signaled a trend day in the making.

The key levels worked well for both short and long trade facilitation, but given the market structure today, shorts were very risky.

We had a 12 point day session range with more volume generated today than yesterday, with heavy acceptance in the 1178 area.

For the overnight, I am using that 1178-1180 area as initial resistance with 1181 being the today's high. I am using the 1172 -1173 level as initial support. With 1174.75 being the last significant top level.

1183 - 1184 above as resistance, the same 1169 -1170 level can be used as support along with 1164 - 1165.

More to come tomorrow....

Monday September 27th 2010 - No news

Globex Range 7.75 pts

Market opens below Globex midpoint and takes out globex low

RTH range is 8 pts with a 5pt Initial Balance with no news to move to warranty any movement with conviction. Market closed near its lows below midpoint and VWAP with a negative TPO count, sets up for continued weakness into overnight-am session.

Wednesday, September 8th - No news Obama speaking at 2pm

Globex Range 10.50pts

Market opens above the midpoint of Globex range taking out Globex high with range extension.

RTH range is 10.75 pts with an 8 pt Initial Balance - high got taken out with range extension

Tuesday September 7th 2010 - No news

Globex Range 12.25 pts

Market opened below midpoint of Globex range, took out Globex low.

10pt RTH range with 8pt Initial Balance, minor range extension to the downside closing below midpoint and VWAP.

August 18, 2010..... It's been awhile!

First off cheers to our 1220's call back in January/February of this year, it was certainly an uphill battle since no one believed it. Turns out we called the top so far to the very point. Congrats to any and everyone who was able to capitilize on that market move!

We are looking here at a daily price chart of the SP 500 cash index, after putting what in my opinion is a low that will stick for awhile (more on this later) at the 1010 level in the SP 500, we had a couple measured moves long into an eventual double top at the 1130 post fed comments.

What proceeded was a full 50% retracement and a previous unfilled gap (*1*) which was hit on Monday, it called the low and we rallied from there.

What happended yesterday is that we ran into a minor 50% short setup opposing the long setup. That area provided great shorting opportunity and caught the high of the day.

As for now, bulls have control of the short term direction of this market, but resistance still stands @ 1099, 1106, and a previous unfilled gap @ 1121.

However I believe these resistance levels will provide only temporary resistance as the long setup target of 1155 becomes achieved. We'll take it day by day as things progress, but for now path of least resistance is UP.