Saturday, July 26, 2008

Daily Bias and Pivots



The S&P 500 Index is currently sitting on a support ledge. There is a good chance that this support may hold.



The 30 Minute $TICK chart shows that the $TICK is trying to turn positive. The two moving averages are a 13 and 38 period SMA.





Expect range expansion on Monday and/or Tuesday. We should start to see buying interest increase on Monday and/or Tuesday. Pay attention to the market's reaction to tests of low pivots.



Friday was still a short-trade bias day. On short-trade bias days, look to short near previous pivot highs. If the market proves you wrong, your loss is minimal. The opposite is true for long-trade bias days.
Remember: the short-term market cycle is around two days and momentum precedes price.
Charles

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