I will be presenting a 3 day live online seminar on March 2, 3 and 4. This will be a great trading course for those that want to learn trading skills with specific Pattern Recognition. You will also learn trading trend versus ranges. Watch this video to find out more…..
http://www.tradingliveonline.com/webinar.html

In early February the SP 500 declined to a .382 retracement where the market found support and has now rallied up to the Daily .618 retracement at 1106-1107 area. The SP 500 closed on Friday at this retracement. The expectation now is for a move down using the lows of Februry 5 - 1040.75 - 1111 for watching retracements lower. The support at 1140.75 is important support, keep an eye on that area….

Traders often look at choppy price action and fail to appreciate the rhythm of the markets and how this can aid a trade plan. Over the course of the past six months the S&P’s have had a series of 2 steps forward-1 ½ steps back repetitions that at first glance appear random at best. However a closer look shows the symmetry of the price swings that has formed in recent months.

The daily chart shows that since September the S&P’s have had 4 separate rallies that covered nearly the same distance. In each instance the markets rally from low to high covered approximately 90 points in the S&P’s. The current rally is looking eerily similar to each of the previous rallies mentioned here. If this current surge completes in a similar time and length…that will place the S&P’s at 1124. This is also a 78.6% retracement of the entire sell off.

Kevin Riordan