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Yesterday's High Potential Setup in the S&P resulted in a sharp and very profitable move to higher prices. Pattern Signals fired for today's trading imply even further upside to follow. The March S&P E-Mini contract has fired 90-10 High Continuation & Reversal and Momentum Pinball Sell signals for today's trading. The 90-10 High Continuation & Reversal signal tells us to look for morning follow through on the strong close, but to expect a likely reversal once the initial move has topped. The Momentum Pinball Sell signal suggests that IF the first hour's low happens to be broken, the market is telling us something completely different than originally assessed, and we'd want to consider a short position. Cycle Indicators (chart at right) appear as if a short term cyclical low has recently been marked, and the more immediate trend is to higher prices. Odds favor continued upside in today's early trading. Buy the break of yesterday's 2058.50 high, or even earlier if price demonstrates strength above the 2044.50 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 resistance levels. Our Normal High Range Projection level of 2074.25 or the Extended High Range Projection level of 2088.75 would be likely areas for such a reversal to take place, as would a test and failure of yesterday's high. To learn how to trade these setups every day Click Here!
Disclaimer: trading involves significant risk and is not suitable for everyone.