Trade Aptitude

Results of Friday’s Best S&P Futures Turning Points: Buying 4126.50 picked the bottom of the session multiple times offering 16 points maximum and 13.50 at the close. 

Today’s Best S&P Futures Turning Points (consider wider stops and less size in fast moving markets): 

Buy 4096.75 stop 4092.00. Short 4208.25 stop 4212.00.

The World Index: (+100/-100) drops from +57 to +29 with most major world markets mildly Bullish.

Catalysts: Nothing on the economic calendar. Waiting for FOMC Wednesday is likely.  

Quick Tip: Second Helpings

The volume level that held the market up on Friday was originally produced on May 24th. It was also Thursday’s day session low. And it generated 4 winning entry signals on Friday. 

What should we expect going forward? 

Traditional technical analysis looks at a price level that often works as strong support. While that may be in some cases, the fact is that buy orders were getting filled. Plenty of them. From our view this is getting weaker, not stronger. 

The evidence we’ve collected over thousands of trades backs this up. Second touches work, just not as well as initial touches. Subsequent touches rarely work. 

Since we’re working with probabilities not certainties, we’ll watch this level until it is violated but the only actionable trade signal that will come from it will be the breakdown below 4120.50 with a stop at 4126.25. 

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Trade Fearlessly,

Mike Siewruk

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