The market went basically flat today, closing slightly lower.  This was the consolidation day that I was looking for yesterday.  So, I was off a day… nobody’s perfect I guess.  Regardless, I’m looking for the swing trade play, and I’m just sitting in cash for now.

I think tomorrow could be another consolidation day, just like today.  Slightly up or down, but no big move yet.  Everyone seems to be waiting on the jobs numbers on Friday.  I think it will fool everyone and be viewed as positive… which will push the market higher again.

I’m really looking for a move to 112.00 spy or better.  I’d love for it to reach 113.00, which was the major lower level of support during the 2 week battle between the bulls and bears, while inside a sideways channel.  The 115.14 was the high, and the low was just a hair above 113.00 (spy).

The ideal plan to happen is for the market to pullback a little tomorrow and then rally one more time on the fake jobs numbers Friday, as you know the government is going to lie again.  Let’s just hope they do a good job of it this time.

Here a chart of what I’m looking for…

The-Chart-Pattern-Trader-spy-daily-02-03-2010

The trades you decide to take shouldn’t be based on what I’m taking.  I’m very confident of this wave 3 down coming, and that’s why my risk tolerance is high.  Buying short term February puts could make you a ton of money or you could lose it all too?  My indicators tell me it’s going to fall, so I’ll be taking higher risks.  Choose wisely….

Red