Day trading course after a Panic Decline
After a Panic Decline the Market normally goes into an ascending wedge, our day trading course is watching for buying weakness.
Last week on our biggest day we had a 94.75 range.
Monday: Down 86.5 points
Tuesday: Up 60.5 points was negative 34.25 points on the day
Wednesday: Down 48.25 points
Thursday: Up 45 points
Friday: Up 8.25 points
Unfortunately, we are coming into a bearish flag. The sellers have committed to this move up but are weakening into this resistance around 1200. Watch for a spike up, some price failure and then a test of the supporting trend line. I watch for these patterns on longer term charts as they are easier to read than on Intra-day trading charts.
Day traders on the S&P500 emini futures drove up the market today into the close.
Buyers were in control. The mini rally was on weak volume. Not good for buyers to hold these levels. But as usual for August, we are going to probably have the week to consolidate, maybe even make a few advances as the FOMC meeting in Jackson Hole takes place. As we are waiting for the decision nuances to be haggled by a group of bankers that have never once got it right, Wall Street will be planning how to spend their bonuses on this next rally in the 4th quarter.
Today’s Chart with tomorrows levels on it.
Point of Control 1193.50, if the buyers can keep it above 1200 they will be safe, but once we break it watch this area for seller control. First support at 1284.75, then look for the emini future to test down to 1173. If we have a major sell off, my levels are 1154.25, then 1117 and extreme low of the previous overnight swing low at 1076.25. If we reach these levels all bets are off.
Historically, this is the time we get our first rally. It seems that we have Higher lowss giving us almost parabolic moves up this past week. Didn’t see the volume at the peak levels building so we could have a consolidated range here as we make our next move to 1215 then on to 1229 and 1239.50 . If we get the good news (for the Market) of the QE +1 then we will look for the previous take off zone of 1265.
If this move up fails, Day traders will be looking for a quick sell off.
Be careful of the break outs here as there will probably be a few head fakes. Always remember to do your own work as Trading is a traders responsibility and should always rely on their own skill based on repetition and improvements in technique. If you would like to join us for a day trading course we will be having courses in Calgary, Edmonton, Montreal and New Smyrna Beach, Florida. Join us as we trade together a two days a week and support each other in our trading.
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The S&P500 emini futures has been in a major decline and is subject of weekly talks in our Day Trading Course.
Join us as we go through a little bit of our analysis on the stock market through the futures index.
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This is a monthly Chart on the S&P500 emini future. We are looking at the major areas of support and resistance and where the point of control is for buyers and sellers.
The point of Control is at our first major support presently at 1240. This is on a larger time frame and we are at the beginning of the month.
Our next support is 1210 and then 1180. If sellers stay in control we could see a move to 1160 to test the supporting trend line. As mentioned earlier this summer, I would expect to see this first support tested at the 1240 area. We could see this end it’s move at the second support of 1230 where it was tested on the move up 5 months earlier. The buyers moved in at that support level to bring on new swing highs.
Do consider that this is a very volatile period. With pressure from all the economic news that was looked over this past year and the absurd amount of debt the US government has taken on.
We shall see this play out a bit better on shorter term charts.
The seasoned traders know that they have had to build up their trading maturity level to make the trades that took the profit out of the market today.
The S&P500 day trading course emphasizes that how you do anything is how you do anything. Trading is actually very simple, but it is not easy.
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Let’s look at the weekly charts.
We can see a lot of trader indecision at these levels. Previously, when price consolidated at the monthly highs and lows, this turns into areas of in decision in the market where there was no agreement as to direction. The Red box is an area of indecsion which we will be able to watch price action play out, I have noted the support at the bottom of the box and will watch price on its approach to see if it has enough commitment from the sellers to make to the next level
The tests down seem to stall and settle close to the opening price. Remember these price levels are on the weekly chart. I am not suggestion to trade off of these levels as all day traders are responsible for their own work.
As you can also see the price is holding the major trend and is showing a movement about half of the previous swing range. Could have a bit more to go.
day trading course daily chart bear market targets
Price for the S&P500 day trading course is the most important variable to understanding direction and the structure of the market.
On the Daily chart we can see how the price has moved in a consistent pattern through the support as mentioned in previous day trading posts. The point of control for the daily chart will be 1258.75 with the sellers in control of the close. support cam in at 1244 and we will probably look at consolidation with a move to the Point of control and a further move down to the supporting trend line. This is the area of consolidation on the weekly chart.If there is a break through at these levels then watch as sellers take this to 1219 and maybe to test the swing low of 1210.
The extreme low of this move would be 1160 if we get a break of the 1200 psychological support watch out. If earnings come out with negative surprise, we could get some sell offs that might push the indexes down. Learning how to trade the markets takes time and patience. Our day trading course includes a live trading room where we trade together a few times a week. Join us in taking the profit out of the market. Trading is highly risky, do your own homework, your money is your responsibility.
Always manage your risk first. Check out the post below as one of our traders took 27 points in a live trade today.
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S&P500 day trading course for price action on the emini future.
The Dollar continues to weaken against major currencies as President Obama and the Congress still haven’t come to agreement on debt limit and prevent a default and credit-rating downgrade. The Obama administration threatened a presidential veto of Boehner’s two-step plan to raise the $14.3 trillion debt ceiling and cut $3 trillion in expenditure. A vote on the measure had been scheduled for today and was postponed until tomorrow, still ahead of an Aug. 2 deadline when Treasury Secretary Geithner has said the U.S. will run out of options to prevent a default. A cut of the U.S.’s top AAA credit rating would likely raise the nation’s borrowing costs by increasing Treasury yields by 60 to 70 basis points over the medium term while S&P reiterated on July 21 that the chance of a downgrade is 50% in the next three months and said it may cut the US as soon as August.
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Point of control into the AM session for the Day trading course is 1303.75 if it is not taken out in the overnight session.
Price hit support on the break of the Psychological floor of 1300 and is retreating to the 1300 area to consolidate as we are laboring over the debt ceiling. Looking at this bearish trend in a 50 point range we can see that the supporting trend line is coming in at 1285. Not a good sign breaking through the intermediate term 200MA on the 240 min chart. the 200 ma on the daily is coming in at 1275 which could be the bounce we are looking for in the next few days when they announce the raising of the debt ceiling.
Learning how to day trade this type of price action with the support and resistance is key to keep the emotion of the market out.
There is down ward pressure on this move as sellers are moving to the side lines out of fear versus profit taking. We have been in a congestion zone for quite a period of time in a 50 point range above 1300. This would give the impression of a rounding top on decreased volume. If we do get the good news and the market rallies past the previous swing highs we could see 1540-1560 this year. Our traders will be having a day trading course in Calgary, Edmonton and Montreal this September with follow up live trading sessions and groups. Join us for an amazing course and learn to see price action, manage your risk, and take control of your money.
