Fox Market View: SPX Daily Chart

Thursday 17 February 2011

SPX Daily Chart - 16 Feb 2011

We have now had three trading sessions since the sell setup completed (with bar nine) on February 11th. The associated risk level is at 1345.50. More likely to squash this setup (if it is to be squashed) is time. Usually if there is going to be a reaction it will occur within 4 bars. We are running out of time.
We have now fulfilled all of the price targets we had mentioned (horizontal lines on the chart between 1333-1336. We are also back in a position to watch for a break of the level 2 and 3 TD Demand Line (upsloping dashed line just below the market), which could be an early warning of a trend reversal. Otherwise, the daily chart remains bullish until we at least see a price flip (close today below 1329.15) and a price pulse reversal.

3 comments:

Anonymous said...: I went all-in short at the close today for a day trade tomorrow. I expect we'll see significant intra-day weakness tomorrow (15-24 pts) and a close down 10-19 pts in the S&P as 5-6 pts of the losses will be bought back.

If I am right about tomorrow, we should see a small (1-3 pts) gap down and the open price should be the high for the day.; 17 February 2011 at 17:02
Anonymous said...: Crow for breakfast, lunch, and dinner.

Closed my position after the first 45 minutes as it was clear that nothing negative was going to happen today.

Nothing can stop this market apparently.; 18 February 2011 at 07:55
Saxby Fox said...: I hear you! I don't day trade and hence my emphasis on seeing a measurable reaction to the completions of setups, combos and sequentials.

This is not to say that any one trading style is better than another.

Thanks for sharing your experience in this wildly bullish uptrend!

Saxby; 18 February 2011 at 08:17