Our last post highlighted the AB=CD sell pattern in the SP 500 Emini around the 1100 area. There was also a broadening top pattern. The first large retracement area is down around 1009

The SP traded within 1.5 points of the daily ab=cd sell pattern I have been posting in our live trading room. We saw a late day sell off today with range expansion. Tomorrow we will see if follow through to the downside.

The SP500 traded in a sideways form today, rather than from High to Low. This price action today is forming a coil/triangle. This can preceed larger moves. The question is always when and which direction. There is also an Inside Day and a NR7 formed today which also can preceed breakout moves. It certainly does not guarantee a breakout move the following day, but traders should be on the alert for any signs of trend.

The last post showed the AB=CD buy pattern that completed at the support level. The SP 500 has rallied 40+ points since the 1012 globex lows last week. Keep an eye on the highs at 1075.75 and the 1015 lows.

The last update mentioned support below another 10 points lower, which the SP 500 reached on Friday in globex and the open. The chart above shows the AB=CD buy pattern on the Daily chart. Watch this pattern to see how price reacts and how much of a retracement it gets. Lots of resistance areas now to get through.

The AB=Cd Sell pattern that has been posted has now traded down 50 points from the highs made following the FOMC announcement. There is support in this area and also below another 10 - 15 points. Key will be watching any re tests back up from the buy patterns.