Today is Thursday, August 12th and the market was down today to hit that low side target called in last Fridays post.

I said last Friday that we would trade down to maximum 1075 to 1080 on the S&P and today we hit 1071. The market did trade past the mental target I had, but it came back quickly which is important. That shows that the market is likely to have found a short term bottom at least. Currently the market is trading up off its close for the session and looks good for tomorrow to be an up day.

With tonight’s aftermarket  break long of 1083 on the Emini Futures, we will likely see 1097 to 1104 either in tomorrows session or Mondays. The natural rhythm of the market should swing the balance of power back up to this level.

The market sentiment for this week saw the bullish side move up 3 percent to 41% and change, getting closer to a neutral standard setting. This rally here is what it is all about, if this rally fails the market is in trouble. We will need to stay above today’s lows. Again, if that gets taken out, I can not see how that is going to good for bulls, as heavy selling will come in for sure. Being objective and just reading the charts, that is how I see it. So lets hope for a big bounce first and a powerful push higher from here. If this rally looks and acts weak, that will be a sign of trouble. I believe, we should see heavy buying up to the numbers stated above and a very strong market to that point, after that, we will have to see.

The bearish camp dropped down to 27.5% and represents a 6% drop from last week. That is not good for the bulls. More people are getting bullish and less people are getting bearish. When you get a minority position, marked by certain levels, you will see a swing in the opposite direction.

One thing I believe for sure is that we will see an uptick in volume and movement. Even though this is summer and usually slow, I think you will see nice swing trades coming.

Below is today’s trades. The first shot is for this mornings trades and the second one is for the afternoon session. I did a video of the whole day and show all the turns with a little commentary. You can find it in the Video Gallery and should be the last one in line.      Good Trading, Vince

Related posts:

1. Nice Trade to Target in Today’s Trading
2. Big Profit Day in S&P and Link to Free Newsletter
3. Market continues sell off & Nice smooth day of gains
4. Scalping the S&P 500 for Daily Profit
5. Big Profit Day for the Bulls

Tags: market sentiment, mental target, reading the charts, S&P 1097