Wednesday, December 9, 2009

Lets Talk About the Recurring Pattern as we Look Ahead to Tomorrow's Open

I've been mentioning for some time now about this recurring pattern where the markets trade in this range that we have seen for several weeks now (see charts below). The pattern suggests we will Gap up tomorrow and move toward the top of the range ($111.42 give or take). I am in no way saying that markets repeat themselves, because I don't believe they do, but at the same time, I think it is worth mentioning. The way I am going to play it is, if we do Gap up above $110.34, I will go long in morning trading and set a target of around $111.40. Thats about all I have to say for now about trading tomorrow. Have a look at the charts below to refresh your memory about recent market behavior and how the pattern has been respected thus far.


SPY 15 Minute Chart (a)



SPY 15 Minute Chart (b: a closer look)

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