Today is Tuesday July 14th and all is well.

I took some time off recently and will probably start trading again and keeping my blog updated. I have my internet connection problems behind me and feel pretty rested.

Today’s market was an extension from Monday’s big day. I could say even though I did not post it, I knew that we were going to bounce big in Monday’s session. If it did not happen on Monday it was going to be Tuesday. It took off on Monday with a couple of head fakes early on which were great opportunities to jump on board.

As I write this, the after market trading has spiked up to the top of the channel and hit a little resistance there at 912 on the S&P emini. Earnings on Intel came out and were favorable so I guess they liked it and bit up the whole market – nice excuse.

The market is acting as I thought so far. The false head and shoulders neckline break threw a lot of people for a loop. The market is not out of the woods yet but it is looking better for a push up through the overhead resistance. We will have to wait and see, but keep your eyes open for some good moves to the upside, keep your timing sharp.

I do think the gap of about 6 points will be filled sometime tomorrow or even in this evening’s aftermarket session. Should be an active day tomorrow. The volume has been way off with only about 2 million contracts trading, instead of the the 3 million plus we are used to seeing – “the summer”.  This is the time to take time off or scale back and the street is apparently in full stride.

The sentiment numbers look steady but I will be looking at this week’s numbers closely to see if there are any changes. Market Harmonic’s http://www.market-harmonics.com/free-charts/sentiment/investors_intelligence.htm link will take you right to the free information, but it is two or three days behind. The numbers come out on Tuesday but you won’t see it until around Thursday unless you subscribe, still good for free. I had thought the sentiment would have turned more bearish during the recent downtrend, but as I have said, not a lot of movement there yet, that is why I will be looking this week.

This push may be the push up that I had suspected we would be getting that would take us through the rest of the summer and push us up to a higher resistance level, from where we would struggle and eventually fall hard and fast. It looks like the scenario that I had painted months back is still in place, time will tell. Currently short term bullish, long term bearish, that is my position for months now and this pullback is just exactly as I previously talked about. A pull back that was not very deep catching the bears by surprise and another push to new highs for the big set up?

A few screen shots of some potential trades.

http://www.screencast.com/t/cyGEJaQ6Pn

http://www.screencast.com/t/PxR0rLv5

Related posts:

1. The Stock Markets next likely Move
2. Markets Next Big Move Coming Soon
3. Big Move for the Markets Today
4. Looking For Big Move in the Markets
5. Markets Rally to Previous Highs

Tags: aftermarket, S&P emini