Here is a great example of harmonics at work. Watch this short video of how the SP 500 Emini found support at a previous support level and formed trading opportunities and what to watch in the coming days.

http://www.instantpresenter.com/tradinglive/EF55D78087”

 Come visit us at www.tradingliveonline.com and see how we use these concepts everyday in our Live Trading Forum!

Leslie Jouflas

The update today shows an overall picture of the SP 500 on a 60 minute chart. There are gaps shown in upper portion that are an island reversal pattern and bearish price action following.
Today is going to have a large gap down open. Price in globex is trading around the 1053 area which can be seen on the chart at the red arrow. It is also at the .618 retracement area. Watch to see how this holds as support. Rallies have been failing and leading to more downside.
The important low to watch is the 1006 low from early July.
For today watch if any rally back up to the 1061 - 1065 area. We may see a short term, intraday, sell setup in that area.
Overall this longer term picture looks as though more downside to come.

The chart shows a few areas to watch over the next days/weeks.
The 1127 area above has been strong resistance that is larger area on upside to monitor if any rally attempts back up.
A few gap areas worth noting:
Upside - 1101.25 - 1119.25
Downside - 1083.25 - 1077.25
If SP 500 Emini trades to the downside below the lower gap area then 1064-1066 and then the 1053 area are next support levels to monitor.
Have a great trading day!
Leslie Jouflas
www.tradingliveonline.com

Watch 1084.25 Fridays highs as resistance, if the market trades above that then we will be watching for retracements higher and the unfilled gap at 1101.50.
If the market trades lower today watch the 1070 area and below that unfilled gap at 1064 - 1066 and then the 1053 pivot area.
Friday was an inside day and narrowing range so there is room for range expansion today.
Have a great trading day!
Leslie Jouflas
www.tradingliveonline.com

Downside break from the coil, see chart posted on yesterdays blog, and trend day down.
There is a gap close below at 1066 area and then lows from mid July at 1053.
Yesterdays close was 1084.75 and we will see another gap down open today. A test back up towards the close of yesterday may setup a shorting opportunity.
We will be watching for a setup if price rallies up to that area. 1091 is also a good resistance area to watch.
We will also watch for a possible buy pattern (short term intraday) pattern to form around the 1066 area, this is fora short term trade only because the market has broken to the downside from the large coil.
Have a great trading day!
Leslie Jouflas
www.tradingliveonline.com

The chart shows the large coil that has been forming in the SP 500 Emini. In our Live Charts Forum we have been watching this coil form and have been talking about the levels to watch.
The 1127.75 area has been strong resistance and has been tested several times. The high yesterday following the FOMC announcement was 1124.50, did not quite fill the gap from yesterdays open.
We pointed out yesterday to our traders in our trade room that 1108.25 was first level to watch on the downside followed by 1103.
The market is down in globex and will open with a large gap down! It is below both of these levels, watch the open today and see how the large gap down open reacts, that is, does price attempt a rally back up into gap or does it continue down. There is potential for a larger range today and potential trend day out of this coil (trend can be either direction).
Have a great trading day!
Leslie Jouflas
www.tradingliveonline.com

SP had a break to the downside out of range and traded down to the gap area on Friday, held then very strong move back up into the middle of the range.

Watch 1127.75 on the upside and 1103.75 on the downside.
There is an FOMC meeting this week with the announcement on Tuesday, we will see coming into Tuesday if this range is still holding and possiblly the FOMC announcement is a catalyst to break it out.
Today we will watch for support on first test down if an abcd pattern forms.

Above the 1127.75 area there are larger patterns that are forming that we will keep you updated on if price moves higher.
Have a great trading day!
Leslie
www.tradingliveonline.com

We have been watching this range last several days. Early Employment report sent the markets down to the low end of this range. Watch for range expansion today out of this range, there have been narrowing ranges this week.

Have a great trading day!
Leslie Jouflas
www.tradingliveonline.com

Two charts to look at for today. First is the 60 minute SP 500 Emini chart. This chart shows the 1127.50 resistance area that the market has been trading up to.

Yesterday formed an Inside day (traded within the previous days range) and a NR7 (narrowest range in the last 7 days). These are both conditions that can precede a larger move. We want to be watching for signs up range expansion if this occurs.
The second chart shows a coil that has been forming the alst couple of trading days up against the 1127.50 resistance area. Just above is a 1.27 extension pattern, where the yellow circle is.
In order for the price to have a good breakout to the upside you will want to see long bars up through the 1127 - 1128 area and all the indexes following.
If there would be an attempt higher then a failure the market could then see sellling and we would then be looking for it to trade below the coil.
Have a great trading day!
Leslie
www.tradingliveonline.com

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