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A 3 Day Rally Into A Down Trend and A Jobs Report

I've looked at the markets from a number of different angles to figure out the most likely areas of support and resistance for tomorrow. My real consideration is how far up before you sell it without getting caught in an updraft, and how far down can it be and still buy it before it's clearly on its way down to the lows. This consideration is important because the jobs report tomorrow's can change everything about any directional bias going it that report.

You can see the primary trend lines on the charts below which will highlight the facts that the markets have moved up into an extraordinary area of resistance as defined by moving averages and trend lines. After much consideration, the best way to determine your bias for tomorrow is still the straight forward method we use of considering where the market is trading relative to the pivot and S1 or R1.

So long as the market stays above the S1 level, you should give it the benefit of the doubt, and consider the COUNTER TREND up move intact.

If the market gaps down use the 5-min. O.R. to determine your bias. If it gaps up use the 5-min. OR to consider fading the gap, but the 30-min. to follow anything over R1.

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One Comment

  1. Dana

    I think we should protect our profit since it is still bearish time. May use the trailing stop can be a big help in this current situation.


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