The Pattern Trapper Market Update Blog
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The September S&P E-Mini contract has fired 90-10 Low Continuation & Reversal, High Breakout Continuation Setup, and Momentum Pinball Buy signals for today's trading. The 90-10 Low Continuation & Reversal signal tells us to look for morning follow through on the weak close, but to expect a likely reversal once the initial move has bottomed. The High Breakout Continuation Setup signal implies significant upside IF Friday's high happens to be taken out. The Momentum Pinball Buy signal suggests that we'd want to consider longs if price is strong enough to break the first hour high. Cycle Indicators (chart at right) appear as if a short term cyclical high has just been marked, but the more immediate trend is to higher prices. Odds favor continued downside in today's early trading. Sell the break of Friday's 1357.00 low, or even earlier if price demonstrates weakness below the 1362.50 level of the Daily Pivot. But stand prepared to exit or even reverse if we get appropriate price reversal patterns and/or Oscillator Divergence near important support levels. Our Normal Low Range Projection level 1350.75 or the Extended Low Range Projection level of 1345.00 would be likely areas for such a reversal to take place, as would a test and failure of Friday's low. The Momentum Pinball Buy signal, on the other hand, suggests we consider the long side if the first hour's high happens to be broken to the upside.
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