The last few days I have been writing about a possible upside breakout, that would slow down the sell off for a while. We are almost there.
Today the Dow did make a lower low that I was anticipating, by 25 points, than it made on Dec 1st and the S&P just matched that low. That was the bait and switch I was talking about. We got it on the Dow by a little bit and we did not on the S&P.
I will have to look at this as a market reversal and the rally will be at a critical breakout point. Monday it will have to have upside follow through and convincingly break out above its previous high for the temporary trend reversal to take place. For some reason, if it now takes out the lows of today, we will be in big trouble and a potential massive sell off will likely continue. I do not think that is going to happen, but we will have to wait and see. My best guess is we will be up big on Monday.
As far as my daytrading is concerned, I was able to get my accelerated goal for the day of 4 points. I had a few losses but I was able to come back. The market started to make an upside break and I positioned myself for a few of those points. The chart below will show a few of them.
On Wednesday, if all goes according to plan as my business plan calls for, I will be moving up to two contracts and when hitting 4 points for the day, it will add up to $400 for day and $2,000 for the week. My plan really only calls for 2 points, but I feel pretty confident I can pick up the 4 points meeting my accelerated plan.
Hope everyone has a great weekend and thanks for stopping by.
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