The recent AB=CD sell pattern has had a 40 point correction and corrected late last week down to the first support area. The question now is do we see a lower high to the high made the day of the fomc meeting or higher highs. The SP 500 ralled up to the .618 retracement and so far has not gotten above. There are a lot of reports coming out this week that could move the markets.

I wanted to show the Daily Chart of the SP 500. It took several days of testing up and around these levels to get a turn down. Yesterday after the FOMC announcement the market spiked up and then trended down into the close, which formed a bearish engulfing pattern. The SP 500 low today found support at a .382 retracement. We will watch from here to see if we get further downside.

Friday’s trading closed with what is called an ‘Inside Day’. An Inside Day is where price trades within the range of the previous days range. You can see on the chart posted below the example of the Inside Day on Friday.
An Inside Day is a form of the markets contracting and can lead to larger moves.

We have been watching a Daily sell pattern for a while now form in the SP 500 emini. That pattern completed today. It’s interesting as that pattern was nearing the completion price the intraday charts were also forming smaller sell patterns that completed into the same area. If the market does move higher from here, there are still some numbers in the sp to watch for reversing points. We will monitor this pattern that completed today.

We have been watching several patterns that are shorting patterns in the SP 500 and Nazdaq and Dow.The SP completed to sell patterns in globex this morning and off the open and getting a nice move down. As day traders we capture short term swings. We will watch up here for potential larger moves to the downside.

Having Patience (PAYtience) in trading is a key element. In the long run it will pay to develop patience if the trader does not already have that characteristic.
I day trade the SP Emini 500 and use specific patterns. One pattern shown in the example below i use is called a 1.27 extension pattern. It is a Fibonacci ratio. I use specific price targets, stops and Fibonacci retracements for the exits.
The actual time for this trade was 45 minutes, which when trading a short time frame can seem like a very long time. However, learning when to have PAYtience and times to exit when a trade is clearly not working in your favor require experience and skill.
With the specific setups I use the majority of the time PAYtience will prove to be the correct thing.
Below is the chart example of our recent trade.