Today is Monday April 19th and the market put in a reaction rally off of Fridays sell-off.

To me, it looks like we may see some sideways to down action coming this week. It is just a quick observation as it looks like the top side has hit a temporary cap to its upside momentum. The volume from Fridays session is what I was hoping to see a while back, very nice volume, more than double its recent average. That made for some great opportunities.

I had a big day on Friday, the best day trading for the year. I took advantage of the increase volume by hanging around a bit longer than normal. I was going to stop after better than double daily goal, but decided that this was a day that I should put the pedal to the metal. We have not seen days like Fridays session for some time, so I took advantage of the price action. I traded like I normally do, with tight stops, but was able to let some of my trades run and run they did.

Going by memory, I think it was Goldman Sacks was being sued by the Feds and that got things moving. I saw the volume instantly kick in with huge lot size behind it. I was in that move but I had only picked one point out of the trade. After the first consolidation, I jumped in and rode the move down for several points. It was like that for the rest of the session. I watched the market most of the day and took a few breaks in between. Below is my equity chart of my results for Fridays session.

I did trade today as well and it went fine. I only traded for 45 minutes and ended it. I have been making a solid effort to trade earlier in the session. There are much more opportunities and things don’t take as long to come together, overall much better. Below is are my equity chart results for today’s session.

Below I have one more chart for you to take a look at. It is a daily chart of the S&P futures continuous contract and the cash Dow and cash NASDAQ markets. Take a look at the resistance running across the top of the Dow. That is some pretty strong consistent blockage that it keeps running into. There are only two ways to resolve that, a drop or a breakout. Both options can be looked at, but, which one has the most likelihood for the next move. I will you make up your own mind on that. I see for the short term, sideways to down, but we will see in the days to come. The market can continue to go higher, but it needs to move sideways to digest its gains. By moving slightly down, that, also gives it additional time and room to move higher, but it is going to need to do at least one of those, time or a little backing off in price or both.

Well, that’s it for now. Lets see how things shape up. I will be sure to report the Investors Sentiment numbers that come out after tomorrows close on Thursday. I get a two day delay. For the link look in the resources section of my website. They update it for free and it posts usually late Thursday evening.

Until next time, good trading.