As seen in the 60 Minute Chart above for the S&P 500 Index, the market stayed within the 1340 and 1320 equilibrium zone. Remember that traders have a tendency to trade at even numbers.
Rising oil prices yesterday did not help the bulls push the market much above 1340, and the 1320 area still attracks buyers.
A 1000 TICK chart helps me see market structure (Higher/Lower Highs and Lows) throughout the day. When making higher highs and lows, look to go long at 50-78% corrections, and vice versa for lower highs and lows.
The 1 Minute Chart above helps to see how to time these moves. On the $TICK Indicator, I am using a 10 period EMA and 25 period EMA to help visualize $TICK momentum. After the market corrects from a down trend by 50%, a good place to short is when the 10 EMA goes below the 25 EMA. Notice how the market accelerates to the down side soon after.
Charles
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