Wheeee, what a ride!
There's nothing like a nice market shake-out to let you know where things stand. After all the drama though, we're right back to the same 2,835 line we were watching on the S&P in yesterday morning's PSW Report. If we're back over 2,835 this morning, then all that panic was for nothing and this is merely a little consolidation off a huge run but we did run levels in our Live Member Chat Room that now need to hold on each index (futures) in order to be bullish again (currently we're just waiting and seeing):
- Weak bounce lines: Dow 26,130, S&P 2,835, Nas 6,980 and Russell 1,585.
- Strong bounce lines: Dow 26,260, S&P 2,850, Nas 7,010 and Russell 1,590
At 8am, we have (in the Futures) Dow 26,257, S&P 2,836, Nasdaq 6,968 and Russell 1,595 so mixed signals so far and nothing we'd like to throw money at though yesterday, in our Live Chat Room, we were throwing money in all sorts of directions as we played the nice, violent market moves in the Futures.
- We played the Dow (/YM) Futures long at 26,200 for a quick bounce at the open: Up $125 per contract
- At 10:12 we played the Russell (/TF) Futures long at 1,585: Up $375 per contract
- At 11:33 we played the Nasdaq (/NQ) Futures short at 6,950: Up $600 per contract
- At 1:30 we went long on the Dow (/YM) Futures again at 26,000 and that one I predicted our $400 per contract gain at the entry:
OK, that was a nice dip to 6,920 but $500+ is always a good place to give your horse a rest so done with /NQ and now looking for a bounce again.