Tuesday, July 13, 2010

Market continues to impulse higher...

...well all you aggressive traders are under water based on my trade setup and conservative traders are still on the sidelines. With the price action moving like it is, the market will likely keep everyone out of their positions. So here is what I'm seeing on the technical front:

Current price structure is bullish (so far) as price pushed out of the potential ending diagonal this morning. I'm expecting at least a 20-25 pt correction starting tomorrow as either the start of minute wave 3 (minuette wave 1) that will take us to the 1070 area and test the hourly 34 SMA. If price can get close below 1060, then that should be our signal that the bear is back.

For those conservative traders out there who are anxious to get short, I would look to go short below 1090 with a stop at whatever the high was when price gets to that level. Otherwise I would wait for a wave 3 setup on at least the 5 min chart (15 or 60 min chart the more conservative you want to be) to trigger a short entry as illustrated.

Best of luck!
blog comments powered by Disqus