"We thought that we had the answers, it was the questions we had wrong."
This is a standard chart of the S&P 500 Index showing the support lines formulated from the opening range from the start of the calender year. The market did not act well when it reached the +4 area @1524. It could test this area one more time, but if it can't get past this level, it should retrace back to 1500.43 and if selling picks up 1476.76.
Below is a two day intra day chart of the S&P 500 futures from Thursday and Friday. The high Friday was the midpoint of the entire down move from Thursday. This level and the 61.8 level of 1523.8 should be an area to watch to see if the bounce from Friday can continue with any momentum. The volume Friday was very low, so until this bounce proves itself, it should be kept in context. Watch the first 15minutes of today's open to get a feel for the area to base trades off of, this concept is covered HERE.
Below is the corresponding chart for the Nasdaq 100 Index (NDX).
A few other charts to keep an eye on. The bulls are saying the market is going higher because of the reports on the high level of short interest in the market. News could be colored with a positive slant over the short term.
Continuation from the last post in the next article; short strategy and scanning.
"The less you know, the more you believe."