Enlarge any chart by clicking on it.

Unless otherwise specified, ALWAYS use the 15min chart to enter my recommended plays because
CONFIRMATION is a MUST. In other words, you need to see a 15min candlestick that CLOSES beyond
the entry point, then enter when it moves 10cents after the high/low of that candlestick.

Wednesday, October 19, 2011

S&P 500

The market is consolidating for a big move one way or the other. Yesterday, there was a mismatch between daily and 30min charts. The daily was pointing to a down day today (based on the Diamond Pattern) but the 30min chart was indicating a possible rise.
Today, the daily chart is indicating an up day tomorrow after an initial small down move at the open, but not indicating a move above today's high (1229.64) or open(1223.46) base on the Diamond Pattern (unless it's a break out of the pattern for more push up).
On the other hand, the 30min chart is pointing to an up day without the initial drop (unless it's setting up as a bear fakeout). It's also pointing to a rise above today's open and high.
Advantage goes to the Daily chart because the Daily trumps Intraday. But that does mean much since the Daily can follow the intraday as a breakout.
It drives me crazy when my charts are not all pointing in one direction. Oh well.

SPX-DAILY

SPX-30MIN LONGER TIMEFRAME

SPX-30MIN SHORTER TIMEFRAME
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