Today is Thursday, January 7th and all is well on Wall Street.

I don’t look or watch much financial news, but I did see that the unemployment numbers are coming out tomorrow and there was some talk, good-bad-neutral. I did not really hear a consensus, but, based on some other numbers that I was waiting on, I would say that there is a good chance that we may have an upside surprise. I totally welcome it. It seems the sentiment numbers came out on Tuesday and just receiving them today, (2 day delay), says there is likely more room to the upside for the rally.

The numbers went the other way, a bit of a surprise, but just what we needed to keep the rally alive. We dropped down inside the 48 % Bullish figure (55%+ trigger point) and the bearish % came up 1.5% to a paltry 16.9%. The main numbers are the bullish numbers and they have pulled back down. That will give the market room to move up without causing an overly bullish bias. You want to see skepticism in a rising market. That is what really keeps it going. Once everyone feels to strongly one way or another, it’s usually lights out. So to recap, it does look like the rally will continue and the technical picture says the same thing as well.

The monthly, weekly, daily and 120 minute momentum on the S&P 500 cash, are all pointing up now and that should carry us over into tomorrows market.

Yesterday, I did mention that if 1130 on the S&P futures broke we could trade down to the 1120′ish level. It never made it that far and is a good thing. We were in a rising wedge pattern and in a up-trend, when that kind of pattern gets broken, you will usually see some type of selling movement at the break. We did get the selling, as the break happened, but it quickly got shored up. Later on, a test of that low successfully held and we were on our way back up to the highs for the day. That is exactly what you would like to see. The bear’s tried to take it down, but the bulls came in to shore it up and lead an advance to the high of the day. That is a good position, coming into tomorrows session.

I did not do any trading today, but I did post a video of the turning points in my “Scalp Trading” screen and you can see that below. These are short-term trades designed to capture small pieces of profit from the move. When I see a certain trade setup brewing that I like, I can click the screen to a different window set up, to take advantage of this condition, which can capture several points, instead of just a small scalp. Not all of these trades are gains, to be expected and I did not trade any of them today, in addition, you must know how to manage the trade after you put on an entry. All that said, these are still the turning points as the “Sniper Day Trading” method would give them. As of Monday, I will be back in full swing. I may take a few trades in Fridays session, but not sure, we will see.

I feel it is important to learn this type of trading, because you never know what the market will through at you and that would include, very slow, direction-less days with little movement to it. The market should  pick up considerably in volume, daily range and trade setups in tomorrows session and certainly Mondays. This is the time, that the institutional players will be coming back from there extended time off. It happens like this every year and so this is no exception.

That is it for now, a little tired and need some rest, so until tomorrow,

Good Trading !

Related posts:

1. Market Sentiment Turns More Bullish – Trader Beware !
2. Index’s Making Room to Run, buying time
3. Bullish Reaction Move Expected to Show Up Soon
4. Market Drops Off as Sentiment goes with it
5. Market Sentiment getting closer to trigger point

Tags: bullish bias, Rising Wedge, S&P futures, Scalp Trading