Today is Monday May 31st and Memorial Day a legal Holiday and an early introduction to Summer.

The markets are closed today, but the futures market traded early on and then re-opened here sometime this afternoon.

In my previous market call, we saw 46 of 49 S&P points in exactly the time allotted and in my last post I commented that the market will naturally gravitate to the 1075-1080 S&P futures area. Well after running into resistance around the 1090 area in the early part of Sunday nights trading, the market ran into a brick wall and moved to the numbers I had called for. We hit 1079.25 this evening and bounced up 5 points. As far as the move is concerned the market has satisfied this minimum pull back and could mount an attack on two area’s.  Those numbers are 1096 and 1099, both of those are the previous old short term highs. If the market can clear those numbers we will see more, a minimum of 20-25 S&P points is possible.

Tomorrow is a pretty important trading day, in that it will help shape the opinion of overall market sentiment as a new poll will be taken after the close tomorrow and released on Wednesday morning. If we get one more bearish day, it could trip the numbers down yet again and get the bears to bit on another sell-off coming. If that does happen, I do think overall it will be bullish for the rest of the coming week and possibly a lot more. So, the weekly trend of market sentiment has been dropping off for the last several weeks and one more could give us a surprise rally.

I hear some chatter about Oil Stock ready to rally big. If that happens it is actually good for the Stock Market and economy in that if people will pay up for oil at these prices, demand must be there. In a retracting depressed economy, oil consumption goes down, because activity across the board is pulling back.

So, this is only a contrary possibility to help us all see what could happen. If you, me or any trader and or investors only see what is programed in our minds ahead of time, we will not be able to react to the changing events and will be taken by surprise. This really applies to us as day traders in much smaller time segments. You have to see both sides of the market. If you don’t only one view will dominate your decision making process and it could ruin you.

You may find yourself forcing trades to match your preconceived opinions. You will not see a reversal and you will not be able to trade it no mater what. You will never willingly trade against yourself, but that is because you do not see the market changing. You may only be looking for long trades when the market is saying I am ready to go down. You cant take the down trades because it would be going against the strong position you established in your mind.

Does any of that make sense. I hope it does, because I know traders do that all the time and it messes them up to no end. You have to keep an open mind. You can have an opinion about the direction but let it be based on what you see and have reasons to back that up. Once you see the likely directional move, look the other way, just to be sure you are not seeing what you want to see. If you balance yourself this way, you will not be forcing trades against the grain and expecting things to go your way. They won’t if your assessment is flawed. If you see both sides, and go with the evidence you have before you, strong evidence, that is the direction you trade. Try and get your entries down to a set area and know why you are going long or short in that area. What reasons do you have for doing so and is it something that can be duplicated in future setups.

Well, that is it for now. I am going to take my own advise on the big picture right now. I want to see how Tuesdays session closes before I make a better call on the next big move. The numbers above are still valid, but I would like to see a down day to set up for a bigger better rally going forward.

Those are just my thoughts, and hoped some of it helps.       Good Luck and Good Trading.