Yesterday The DJ (not YM)Failed to close the Gap at 8950..Therefore we have an open Gap at 8950 to 8860This morning we will also open with a Gap at 8744.One open Gap generally indicates a potential short term trend reversal.Two open gaps back to back always indicate a Trend.In this case the trend is down..Not closing open gaps to the upside is Bearish..On the open we will attempt to close the gap from 8744Potential short entry points8679 to 8686 first line of resistance8710 second line of resistanceI'm leaning to the 8710 as a potential short entry point,Due to the fact we have a potential open gap at 8744..Until we close the Gap at 8950 to 8860we will have a disruption on our 303 point trading swings.Theoretically we will trade in 90/180/270/360 ranges.Rule of thumb if you want to trade the ESH9 (S.P. Mini's)Based on the YMH9 (Dow Mini) data I supply is10 to 1 Example Dow mini up 100 points the S.P. mini should be up 10 pointsLess than 10 to 1 means that the S.P. is stronger than the Dow..And vice a versa..
YMH9Short TermA clear break above 8659Takes us to 8824A failure to break above 8659Takes us down to 8494The Big Picture:Long term: Days ( 3 to 11)A Failure to trade above 8680 Takes us down to 8113
YMH9A clear break above 8659Takes us to 8824A failure to break above 8659Takes us down to 8494
YMH98715 to 8719 is the next line of resistanceA break above 8715/19Takes us to 8811I'm waiting to see if we close the gap at 8744Before entering short
YMH9The last move down nullifies any potential bounce to 8880Reviewing short entry positions..Potential short entry points8679 to 8686 first line of resistance8710 second line of resistance
There is a possibility we reach 8880Therefore I'm holding off from entering my short positions..
stkcrash - we may trade for awhile on the 20/50 day just like back in late aug-mid sept. I'm refraining from taking a swing short-term trade although the safer trade to make would be short.