Thursday, January 22, 2009

Turn Around Thursday

After we gapped down hard below the pivot today the market sold off to the 807 area. It was quite the super charged rally that followed. We ran all the way back up to the 836.50 gap fill and sold off from there perfectly. You could not have gotten a more precise gap fill. The last hour the market was all over the place but we finished above the important 820 level.

Another crucial thing to take note of about Thursday's action is that we formed an inside day on the SPX. This is a very powerful pattern that usually results in the next day giving us a large move in either direction. If I were to pick a direction I think I just may lean to the upside here.

For Friday the pivot on the ES futures is 822.50. Right now we are trading right at that level so it should be interesting to see how we open. If we do stay near this pivot I wanna look for long trades in the morning as I think they might push this thing into the 850s by the weekend. We still have that gap fill zone in the 860s as well.

If we fail to get over the pivot in the morning then I will be looking to trade from the short side and we could easily see the low 800s once again if this 820 area fails to hold. It will be interesting to see who wins the tug of war going into the weekend but I do think we are in for a nice move either way Friday.


forextradeideas said...

Just wanted to say I enjoy reading your blog, lots of good info. I used to trade stocks but recently moved onto forex. Looks like next week should be key to see if we retest lows. I am also in college so I feel your pain trying to trade between classes. Wish I had the whole day off.

Jason said...

Right on man. Thanks for reading. Yeah I think next week could tell us the trend for the next few months even. Should be interesting. Have a nice weekend.

gtotoys said...

Going to the MOON!

MarketAddiction said...

I'm also in college, and it can be very difficult trying to trade and go to school at the same time. I also try to schedule my classes around the best times to trade, but it doesn't always work out that way, but I do always have my laptop with me and the markets up when I'm in class.