Today is Wednesday August 18th, 2010 and the markets squeezed out a small gains on the  day with Dow up +10 and the S&P +2 points.

I took a few days off this week as you may have noticed. All is well, but just took a break from trading and writing as summer will soon be over.

The trading day ended up slightly as the market sold off near the close of the session. In a nutshell, we did get that bounce I had talked about last Thursday. I said that we should see a pretty good bounce up on Friday or Monday. It did not come on either of those days but on Tuesday where we saw a very nice advance across the board. The previous low should hold in my estimation at this point, but we will see if  Thursdays market has a retest coming. With the late sell off, that is what it looks like.

I could see the market trading to the 1080 area early in the session, where we should find support around there and try and mount another rally. Currently the S&P is around 1087. The S&P market should stay above 1075 and if 1068 is broken, more heavy selling could come in quickly.

The market has big overhead resistance around 1118. If it can get over that number give or take, much higher prices could come in, but that is the big barrier right now and pretty far off.  Also, it will be interesting to see how the Investors Intelligence market sentiment changed today as I won’t be able to see it until this time tomorrow, but will report any changes.

That’s it for now. I have a simple tick chart of the S&P emini futures below showing the early morning turning points as per my trading method. This is just as far as the indicators are concerned. We teach how to trade the price and use the indicators to confirm. Simple but effective. Until tomorrow, Good Trading.  Vince