Did you happen to notice these recent Highest Potential Setups and the resultant market action? If not, you might want to take a closer look.    On the other hand, if you've found the trading methodology    used by The Pattern Trapper to be a bit overwhelming, you can learn how to use these remarkably effective techniques by Clicking Here!

ORIGINAL HIGHEST POTENTIAL SETUP

NEXT DAY MARKET ACTION

S&P; 500 December S&P; 500 futures have fired 2 Day ROC Buy, 90-10 High Continuation & Reversal, and Momentum Pinball Sell signals for today's trading. The 2 Day ROC Buy signal suggests that today's principle trade direction should be to the upside. 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. Odds favor continued upside in today's early trading. Buy the break of yesterday's 1403.50 high, or even earlier if price demonstrates strength above the 1393.00 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 1416.00 or the Extended High Range Projection level of 1427.00 would be likely areas for such a reversal to take place.

ORIGINAL HIGHEST POTENTIAL SETUP

NEXT DAY MARKET ACTION

Nasdaq 100 Nasdaq 100 futures have fired 90-10 Low Continuation and Momentum Pinball Buy signals for today's trading. The 90-10 Low Continuation signal is fired when the day's trading closes within the bottom 10% of the day's range. It tells us that yesterday's late day move lower is likely to continue on into today. The Momentum Pinball Buy signal suggests that IF the first hour's high happens to be broken, the market is telling us something completely different than originally assessed, and we'd want to consider a long position. Cycle Indicators (chart at left) have moved into a region where short term cyclical tops often form and the larger trend is to lower prices. Odds favor continued downside in today's early trading. Sell the break of yesterday's 3330.00 low with a stop just above the 3398.00 level of the Daily Pivot. Price weakness below the DP may provide clues for earlier entry.

ORIGINAL HIGHEST POTENTIAL SETUP

NEXT DAY MARKET ACTION

Sugar March Sugar has fired Low Historical Volatility, Wide Range Day, 90-10 Low Continuation, and Momentum Pinball Buy signals for today's trading. The Low Historical Volatility signal tells us to expect range expansion and a pickup in volatility. The Wide Range Day signal implies that the expected expansion has just begun, and that yesterday's principle trade direction (lower) points the most likely way for the next trend move. The 90-10 Low Continuation signal tells us that yesterday's late day move lower is likely to continue on into today. The Momentum Pinball Buy signal suggests that IF the first hour's high happens to be broken, the market is telling us something completely different than originally assessed, and we'd want to consider a long position. Odds favor further downside in today's early trading. Sell the break of yesterday's 10.26 low with a stop just above the 10.41 level of the Daily Pivot. Price weakness below the DP may provide clues for earlier entry.

The goal of the Pattern Trapper is to make these remarkably effective trading techniques as easily understood as possible. If you should ever have any questions about the newsletter, or the techniques used, please don't hesitate to ask. E-mail Bob Hunt at: RHunt@PatternTrapper.com or call at 952-892-5550