Futures Point to a Lower Open...

Check out these charts before the close:

(click image to enlarge)

1:38 pm ET - Learn the Discipline update - this morning we entered only our second futures trade in the Model Portfolio as we discussed in the May 2 post. We bought 10 NQM9 contracts at 9:43:10 am MT at 1394.50. The position was sold at 11:37:56 at 1405.50 on a pre-entered limit order. Net profit to the portfolio was $2,130 after commissions. 11:25 am ET - after underperforming the SPX last week...Nasdaq has rallied into positive territory as has SOX and XLK...IBM, AAPL, QCOM, ADBE, LLTC, XLNX, PCLN, CTSH, SNDA and many others having a nice support bounce off this pull back... 11:10 am ET - Power company arrived and yes, once again History Repeats Itself...one of the core tenets of technical analysis...an unsuspecting squirrel has fallen victim to the power transformer by doing what he should have not done...reminds me of traders...Power just went on...fuse obviously replaced... 10:42 am ET - Just got off the phone with the power company...large noise on the street and just like that power is gone...while electrical outages are relatively rare they do happen from time to time...on more than one occaison in the past a poor unsuspecting squirrel has jumped on to a pole transformer, fried itself and blown the transformer in the process...with the advent of spring...that may have just happened again...ES has rallied to 914.50...news is attributing Monday morning's sell off to the capital needs of four major banks...this type of news is generally a ripple...remember Chrysler a couple of weeks ago (you forgot already)...stay focused on trend, support and resistance...do you remember the direction of the trend? 10:07 am ET - ES just broke through 909 after making higher low at 907 at 10:00 am... 10:00 am ET - PCLN is moving higher...CTSH rebounded to near breakeven...ES has found at least temporary support at the 905.75 area starting at 9:50 am... 9:45 am ET - this certainly has started out as a pause/pullback day, which we stated Friday there was equal probability for it to be...watch key support levels and trade according to your rules... 9:35 am ET - Markets do open lower...watch Friday's low which the SPY is trading near for a break of the low of the high day... BMO - ES -13 and NQ -20 futures are lower in pre-market trading pointing to a lower open. Since Friday was the high day, key support levels to watch are: SPX = 909 SPY = 90.91 ES = 903 Check out these patterns... (click image to enlarge) At the Open on Monday SPY - bearish harami FAS – white candle inside day STT – large white candle 200 DMA breakout HANS – white hanging man, resistance break out post earnings WYNN – bullish harami KOL – white spinning top in horizontal flag SCHN – white spinning top in horizontal flag EBAY – large white candle above 200 DMA ISRG – black spinning top above horizontal break out SNDA – black spinning top bull flag or double top? ZION - large white candle LEAP - double top or horizontal breakout?