Post for Friday’s market September 30th, 2011; No trading on Friday for me, as I was up considerable for the week and took the day off to do other things. Still Deer Season and looking for that elusive Buck, going out today again, Sunday and hope to find what I am looking for by sunset.
I still have a chart of the first hours market turns as shown above. If was a very active day and there a ton of trading opportunities for points. There is no shortage in finding trades that can produce. Making a few trades and then living life is a good way go. Trading all day is not really my thing. I know many look and follow the markets all day, but I can tell you, that can be very draining. Getting in screen time if you are learning is something else. You have to put screen time if you are ever going to pick up on the markets nuances.
Friday we did see a sell off late in the day and ended on the lows for the session. Not typically a good sign and not exactly what I thought Friday’s market would bring. We are still withing the very thin margin of my last call as the market really needs to stay above the 1120 area in the S&P on a closing basis to keep things alive.
There is more room it could pull back with the most recent lows a critical level, but that is much farther down in the chart. We are starting a new quarter and a new month and nothing has really changed in the setup. I would like to see a reversal day for Monday take hold. I would not be surprised to see a move back up to the 1138 S&P level early on in the session and if that does happen, will set the stage for a break out high yet, but first things first.
There is a little room for lower prices early on, but not a lot, so any reversal should take hold fairly early on. The market can move two ways, that is for sure as mentioned, the stock market is on the brink of tipping over to the next leg down, of which there is 100-200 S&P points of room there to retrace down, but I have already make my position on what will happen first before any further sell off, again, all just my opinion and I could be wrong, so always do your own analysis.
The market is on the brink, there is no doubt and a big move is coming one way or another. Many think the break will come now with a new closing low in the Dow at 10,600 and if that happens, we will likely trigger some massive selling, but don’t think that sell off is going to come now. One more drive back up will get the bears to throw in the towel then we will see. I can still see that 1245 area as a target and resistance, if the rally takes hold in the next couple of days, as we are currently at S&P 1122. Time will tell on this one.
Good trading to all.
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