Today is Thursday June 25th and the markets have made a move.

Did not follow the markets today but had a chance to look at the price action after-the-fact. I saw that in the pre-market, futures on the S&P moved up sharply just a few points above yesterday’s high, very typical. That move took out the stops just above that previous high and with no additional buyers, it was straight back down to this morning’s open.

After the open a slight drift lower and a big break out over some real nice pivot points that sent the market straight up from there. There were two more pushes higher, the second good for another massive leg of 12 points.

Well, you don’t get days like that too often, especially in the summer months. I have noticed the volume is way down, not quite by half. That makes it a little harder to trade at times. The volume is coming in early on the session, with traders leaving for the rest of day. They are making their money and going on to do something else.

But today looked a bit different. We have not had any real good swings like I see on the charts today. But remember, no two days are alike. Many traders will attempt to play tomorrow’s action similar to today’s, but will find out that it may or may not work out that way. Often after a big move up or down, you will see a good bit of consolidation, marked by short swings up and down. This is the market’s way of digesting the meal that it just ate.

So be prepared for that just the same as you would be prepared for follow through moves of similar magnitude. Looking at today’s price action, there seems to be a bit more room to the upside of this move to around 930 on the cash market. Have a look at it below in a 10 minute bar chart. You will see a nice little break out just after the open, that pushed it to the top of the range, just before it broke out above the range. In a small time frame chart, this looked about as good as it gets. At 6:39 you have a solid buy at 893.50 which if you rode it up, the move would have kept you in the trade until 7:14 am exiting at 903 for 9 1/2 point gain. Very nice price action day for those trading the trend.

I am going to end my post for now. I have my daughter visiting from out of town but will continue the training where I left off in tomorrow’s posting.

http://www.screencast.com/t/grAuYtKS4jl 10 minute chart of S&P 500 cash

Related posts:

1. Day two / Sample Training
2. Contract Roll Over Day Tomorrow for S&P Futures
3. Breakout to upside to continue for Monday
4. Stock Market Building Up Pressure, tomorrow could be the day
5. Recap of the Week & extra training video

Tags: bar chart, cash market, pivot points, Price Action, S&P 500