What’s a breakout without a test? A lower probability.
It appears based on pre-market trading that Monday’s horizontal breakout will be tested Tuesday morning. Watch for a pull back to hold above the 1,178 area.
Trade those charts that meet your rules in the direction of the trend.
The Euro is down 122 pips in overnight trading. Oil is down 4 cents in electronic trading. XLE is down 23 cents in pre-market trading.
SPY is down 48 cents in pre-market trading. XLF is down 4 cents in pre-market trading. Watch XLF as a key to any sustained move in the SPX.
Follow your rules in any trading actions today. Be logical.
Look at these Charts
(click image to enlarge)
Support = 1,178, 1,165,
Resistance = 1,200, 1,216
Trading Down: BYI, ICE, FAS, ATI, BUCY, CHL, GS, X, CLF, MOS, DOW, ZION, FCX, POT, BA
Trading Up: USD, SYNA, ATW, WLT, HLF
At the Open on Tuesday
SPY –
QQQQ –
FAS –
X –
ADBE –
BBY –
QCOM –
POT –
CREE –
UAUA –
SNDK –
AAPL –
ALGT –
NFLX –
RIMM –
SHLD –
BUCY –
BA –
DOW –
DE –
FCX –
WHR –
ZION –
GMCR –
AGU –
IPI –
DHR –
V –
NVDA –
AMD –
PCLN –
DECK –
CAT –
PCP –
UNP –
CLF –
2 comments:
Dear Dave:
Your comment about the test of a breakout is very insightful!
Thankyou for all that you do for us.
Best Regards,
Dave, last night you integrated into your Top Down analysis, the ITools "Market Forecast/Market Sentiment" line. And weighted it much more heavily than I've ever noticed.
I guess I'm hoping to have further in-depth analysis of that indicator/oscillator.
Now I sheepishly, admit that, until last night, when you would study that indicator in class, I always wondered why you spent soooo much time on what seemed to this Newbee, to be (dare I say... yikes!) a "junk" indicator; i mean, such a lagging indicator.
I'm very grateful to you! And Clearly I have, oh so much to learn from you.
Thank you for your patience w/ students like me...
Sincerely,
Scott L of Nashville
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