Bearish News Late As Usual, Keep An Eye On 810 Level

April 7th, 2009

Morning folks! First, please watch the trading video from last night for some great short trading ideas. Now, onto this mornings news as the futures are down about 1.5%. Basically after yesterday’s weakness a bunch of analysts and commentators are NOW saying that we are due for a correction. Huh, ya think! Some predict a 10% drop from here – I think this is way too much but hey it’s always likely.

 

The point is that these people are always late to the dinner bell – as they have always been and will always be. If you just flipped through a couple charts over the last few days you would have seen that we need a correction before going higher. Charting and technical analysis gives the early warning signals which allowed members and I to build up a strong portfolio of shorts BEFORE this downward move happens – which we are going to profit on today. Remember I said in a video last week, “if you want to go long, be my guest but you’re going to lose money.” Alright, enough bashing the media, they can’t help but try and help their own ratings.

 

Here are the S&P intra-day targets. We haven’t moved much over the last few days, so these have stayed the same. You might think these are getting boring or unless since we don’t hit the targets. Well, the point is that these are far enough away that if we make it to these targets you can feel comfortable making an intra-day long or short play with amazing odds for a reversal. You should always have these levels on your charts.

 

spx5

 

As for the 810 level. I think that we are going to find short term support there today. Actually support could be in a very narrow range between 815 and 810. The ES S&P mini’s this morning fell right to 815 before finding support, so clearly there are buyers at that level. Depending on what happens during the first hours of trading will determine if we break below that and head lower. Still, I will be watching this level all day long for the signal.

 

spx21

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