Today is Monday September 14th and the markets pulled back but the pull back started on Sunday evenings night trading. From Fridays close to the session lows, was over 12 point, but the market started its recover and at the open it just continued all the way back up and then some. The S&P close up about 6 points but as I write this the aftermarket is off 4 points and now is very close to being flat for todays session. I think we may still have some downside coming, but again I will leave an open mind and just read the charts. Today we did hit a 50 % retracement point from not the all time high but a significant turning point (1433),  close to the all time high, that is being watched by numerous traders and investors across the globe. I will be watching closely for a downside break. Todays action put in a very large pivot point that if broken will send prices at a minimum back to the middle of the range. Tomorrow I will show you a 60 minute chart of where prices are likely to go when and if we get that break.

I wanted to make a comment on an article that I saw, about an Nobel Prize winning economist, Joseph Stiglitz. He said that the problems in the banking industry are now worst off than they were in 2007 before the crisis.  In the U.S. the to big to fail banks have become even bigger. He also stated that we are going into an extended period of a weak economy. This guy was the former chief economist at the World Bank. I am not easily impressed by credentials but this news also confirms similar reports that I have come to hear, about the same thing. There is trouble brewing out there and it will spell trouble for the S&P and there forward looking earnings projections. Keep your eyes open and be careful.

Below are some of the trades my method generated today. You can see the up and down arrows at key turning points. This is out of the 233 tick chart and most of them are in the up direction because that is what the market was saying at the time. I did think that we were going lower around the 10:30 am area, but the market quickly reversed and blew past overhead resistance to continue higher. I did see the trade at 11:30 pretty clearly after a long waiting period. Initially it did look short, but quickly saw things differently to adjust for the breakout.

Tomorrow will be an interesting day, because there will be a lot of news coming out which should bring in the volume, always a good thing.

Last point for today, the market sentiment numbers for last week softened up a little at 48% bullish. That is off about 3%. If we are going to go higher, this easing off is a very good thing. We were getting close to being to optimistic and that could be signalling the top, but that did not happen. If we are able to pull back over the next few days this would set the stage for yet another easing in the numbers. When the bulls take back control, there will be room to the upside for the numbers to adjust themselves to the upside, giving us the signal, but at higher prices.

That is it for now.

http://www.screencast.com/t/2CeF6TyV             Turning points for part of the session