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.

Monday, October 17, 2011

S&P

I believe there will be a Hammer candlestick on the SPX daily chart tomorrow i.e a drop in the first half of the day and recovery in the 2nd half that continues higher on Wednesday and then a drop on Thursday. This scenario is very likely as long as SPX stays below 1227. Move above 1227 will be an indication of the next leg higher.
So look for sideways action the next few days which will setup a bull run after wave 2 is complete and the Bull Flag Pattern breaks out higher.
Note that sideways action are great for daytrading. Take advantage of the opportunity if it presents itself.
Keep in mind that I trade the charts not my beliefs.

SPX-DAILY

SPX-30MIN LONGER TIMEFRAME

SPX-30MIN SHORTER TIMEFRAME
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