March 22, 2011
In our last update over the weekend we said that our level we were watching for was the 1300. We did not have this number just because it is the whole number it is a very important zone to watch for that could terminate the current pattern.
As long as the 1310 level is not taken out we are going to the 1230-1220 area. If this new leg starts we will be able to pinpoint the low within a few points.
A new high is not out of the question from this level. If the market trades down to the 1270 and finds support we could be at a new high very quickly. I think the odds here are still good for both scenarios and this is why we break it down to intra day chart to give us the "If this happens do this" instead of having only one outlook that could be wrong.
We play each leg as it comes and as the leg develops we get better odds on the next leg meaning; on this blog we do not do intra day updates so we are only giving the bigger levels to watch for but we have rules and guidelines of what we look for intra day and we teach this in our course plus give intra day updates through our instant messenger.
You can see on this chart there were some nice sell signals down to the 1250 low. This is a 60 min chart so there will be more color changes. The daily chart is red right now so what that means is the odds of breaking down to the 1230 level does have higher odds.
Tomorrow should be a big day so days like tomorrow are where you should have clear levels to watch for and a clear trading plan. Even though there is more opportunity the majority of people lose on big range days. Watch the 1270 and if that level holds we could make another move up to 1310 and if the 1270 is broken to the downside we would not try to go long and pick the bottom of the day.
Happy Trading,
www.eMiniSchool.com
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