781 Low !

Jan 3rd, 2011

We hope you had a nice new years weekend and are ready to get back to the markets.

From our last video we said that the 781 was the level to look for if the market went down. The video is on this blog 2-3 posts down. You can see from the chart the low was 781.50 and from that low we rallied about 20 points.

It does not matter where the market closes in the patterns they are still valid until they are broken we call this our continuous market outlook. Using the continuous market outlook is so valuable on many levels but the main value is that you start off the day with a actual outlook not just trying to trade the emotions of the bars.

After the high today each turning point was calculated within a few ticks meaning it was a very calculated correction and we are still in it. This means we are going to open tomorrow in a corrective condition which is harder to trade for most people.

It is easy to look at a chart and think that it is the top but we are nowhere near even the first pattern to say we are near a top. This is why we have been going long with our outlook this entire daily chart leg to the upside and our thinking has paid off.

Even the the TF pulled back all the way to the 740 level we are still in a bullish move. Yes, there are waves down in bullish patterns and it is important to know which ones should be traded and which ones should be skipped.

Happy Trading,

www.eMiniSchool.com