Today is Wednesday, August 11th and we finally broke down with some conviction today as the S&P fell 35 points and the Dow -265.

Well, I wanted to post yesterday, but I had family come in from out of town and did not get a chance. I saw the market over the last few days holding up nicely and we did see strong closes at the end of these sessions, but something happened to kick off a ton of stops that were built up over the last few days of trading. I did see and wanted to say that a break of 1110 on the S&P would send this market down and a break over our previous high as a continued move up would decide the next market move, but that was just said to me in my head.

I put up a daily chart a few days ago and said that this break from the above area would send the market down to the 1075 / 1080 area and I see in the night trading that we bounced off that in the session. We are bouncing off that support low by 6 S&P points on this Wednesday evening at 9:39 West Coast. I think we will see some kind of a bounce in Thursdays session but the cash market is likely to trade down to the 75/80 area to fill in the gap from the futures. I would expect to see support in this area at least for the time being.

The up move over the last few weeks has been contained and I am in a just wait and see approach for now on the larger overall market direction. The best I will do is to just trade what I see for now. The market is acting very normal and a pull back from this move up is definitely not a surprise. The market can do what ever it wants to do and we all need to remember not to fight it, but go with it.

Below is the last two days of my trading as I was just scalping this market, especially today. I always remember after a very big drop of which most of it come in the premarket, it leaves little to trade for the regular session and the moves are often smaller. The majority of the energy was released in the premarket and as mentioned, left little for the opening. With that said, I decided to just scalp trade this market for short targets of which you can see in the charts below. Yesterday was a little better, but missed a few good moves, but not complaining at all. So I will be back tomorrow with more comments but will end it for now. Good Trading and be safe.  Vince

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Tags: premarket, Scalp Trading