I don’t think we will go much of anywhere today Anthony. I think we’ll hit that trendline the middle of next week, which would put in a bottom to rally from into December for the “Santa Rally”
Notice how that long red arrow is pointing to the trendline that comes in around the 1310-1320 area. I still think that will be the bottom, as it’s also just a little over a 10% correction as well.
At whatever? In other words we need it to go up to 137 and back off some leaving a tail at the top of the candle and another tail at the bottom. We just don’t want a bottom tail only and close with a solid white candle for the rest of it.
Anytime you close at the highs the candle pattern indicates that there will be a continuation of that move the next day, but that continuation doesn’t have to hold, but only just put in a slightly higher high.
Look at 11/1 for example. A solid white candle “all up day” (no bottom tail at all on that one), which was followed by a move higher on 11/2 but it sold off the rest of the day and end up with a red candle and a topping tail.
If we close at the highs today there is a 90% chance that we’ll put in a higher high on Monday before selling off the rest of the day. So, I wouldn’t go short today if we close at the highs but would wait for the pop higher on Monday and then short.
I don’t think we will go much of anywhere today Anthony. I think we’ll hit that trendline the middle of next week, which would put in a bottom to rally from into December for the “Santa Rally”
Sounds like one hell-of-a profitable week if we go that low, and have a small pop on Monday
Remember this old chart I posted back in October?
http://screencast.com/t/PLQsjeCI
Notice how that long red arrow is pointing to the trendline that comes in around the 1310-1320 area. I still think that will be the bottom, as it’s also just a little over a 10% correction as well.
At whatever? In other words we need it to go up to 137 and back off some leaving a tail at the top of the candle and another tail at the bottom. We just don’t want a bottom tail only and close with a solid white candle for the rest of it.
Anytime you close at the highs the candle pattern indicates that there will be a continuation of that move the next day, but that continuation doesn’t have to hold, but only just put in a slightly higher high.
Look at 11/1 for example. A solid white candle “all up day” (no bottom tail at all on that one), which was followed by a move higher on 11/2 but it sold off the rest of the day and end up with a red candle and a topping tail.
close at what? 137ish?
If we close at the highs today there is a 90% chance that we’ll put in a higher high on Monday before selling off the rest of the day. So, I wouldn’t go short today if we close at the highs but would wait for the pop higher on Monday and then short.
ES target…
http://screencast.com/t/FrX58hEaAKc4
SPY target…
http://screencast.com/t/NvOBanfYA5Oj
ES Support and resistance levels: http://niftychartsandpatterns.blogspot.in/2012/11/es-support-and-resistance-levels.html
We might hit it…. Been some wild swings though… I guess the later they hit it, the better though… Takes a lot of the time value off of today at least