Today is Monday, October 26th and the markets took investors for quite a ride today.
Yesterdays blog, I stated that it appeared that we had broken the down-trend late in Fridays trading and a move back up to the 1086 + level was likely. That is exactly what happened in this mornings session. Here is the quote from yesterday.
It looks like the down-trend has been broken but we really still need to get over the last minor pivot high at 1080.50 . Once that is taken out we will have a good chance to get back up to 1086 + in quick fashion.
Well, the break came on the open, in quick fashion, I might add and did shoot up to 1086 +, with the plus being another 5 points for a total of about 12 points in the first 35 minutes. This is from the cash S&P.
The next move after that came at 7:37 & 8:14 am, West Coast time. The move at 8:14 was real nice. It cut right through all the stops from the mornings open like a hot knife through butter and kept on going to take out the critical support I mentioned from Thursdays pivot low. In the S&P E-Mini’s, it broke about 9 points past the low, before it pulled up to take a breath. Over the last 5 trading days, the momentum in the hourly cash S&P market has been in a down-trend and still is as of now.
Today we saw a 27 S&P point swing from high to low, that is a lot. Currently the cash S&P support is about 7 points lower from its current level. The next support comes in at around 1045-46. The short-term momentum is pointing to the downside but the daily and weekly is still up. This is where you have opposing forces at work from different time frames. Who will win the battle. You really need to let the market decide this one and go along for the ride.
http://www.screencast.com/t/lAkJmeVoGY4z a couple of trades I took towards the end of the day.
Related posts:
- Market Rhythm, can you feel it !
- Index’s Marking Time
- Stock Market puts in Reversal Day
- Screen Shot, S&P 500 Cash Index with Commentary
- Technical Analysis for Today’s S&P 500 E-Mini
Tags: Dow, e-mini, investors, momentum, pivot high, reversal day, S&P E-Mini, time frame
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