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Friday's trade setup in the June S&P 500 E-Mini contract resulted in a sharp and very profitable move to lower price. To see the original forecast refer to the blog post entry below. Pattern Signals fired for today's trading imply even further downside to follow.
The June S&P 500 E-Mini contract has fired 90-10 Low Continuation & Reversal 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 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) are moving into a region where short term cyclical lows often form, but the more immediate trend is to lower prices. Odds favor continued downside in today's early trading. Sell the break of Friday's 1361.50 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 of 1348.80 or the Extended Low Range Projection level of 1338.20 would be likely areas for such a reversal to take place, as would a test and failure of Friday's low.
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