April 2nd, 2011
In the last post we were looking at the TF and the 814 level. A close below the 814 would have triggered us in short but the market ended up being strong so we were not triggered short. If we were the stop was a one bar stop which means the risk would have been very low for the potential in profits.
Looking at the NQ, ES, TF an YM we think the main thing to watch going into next week will be the NQ. The NQ is still at a zone that could fail and the end result would be all the indexes go down.
The market has had some weird action over the last few weeks. We went from a condition of gapping up and down every day to a slow grind up. Overall the market is at a spot where it would make sense to have a correction to the downside.
If the TF takes out Fridays low on Monday we would be careful on the long side.
Again, keep your eyes on the NQ. The NQ completed a short term strength pattern at bigger resistance on Friday. Actually it the NQ went only 1 tick above our target and the result was a 25 point move to the downside noted on twitter when the price was near the top.
Happy Trading,
www.eMiniSchool.com
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