Strong move up this morning from globex. SP 500 is traded above the 618 retracement area of 1081 and has traded up into the next gap area at 1087.50 area.
There will be a large gap up open this morning so traders want to first watch how price reacts to the gap open. This means to see if price retraces back into the gap, does it close the gap, go through it or does price hold and move higher. Large gaps can precede trend moves and the trend can be either direction from the gap.
If prices move higher from here the 786 retracement is at 1101.50. This area was an area the market had a large break to the downside and strong move down.
It’s been a strong move up so any first deeper corrections down should find support.
Have a great trading day.
Leslie
www.tradingliveonline.com

I will be giving a free webinar on the AB=CD trading pattern that can be used in all markets and is found in all time frames. I love trading this pattern and teaching this pattern and I especially love I can show traders this fantastic pattern.

It has roots from a great trading book from 1935 ‘Profits in the Stock Market’ by H.M. Gartley. If you dont have this book yet in your trading library you really should consider getting it. It comes with a packet of charts from the late 1800’s up to about 1937. It is so much fun to browse through those and see how nothing much has changed over all these years.

The webinar is on Tuesday, July 13, 2010 and starts at 5:30 PM PDT (8:30 PM EST). It will go for about 1 hour. Here is the registration link for the webinar.
http://www.instantpresenter.com/PIID=EF59D78183

I hope you can join us!

Leslie Jouflas
www.tradingliveonline.com

The SP 500 Emini has been trading up to a resistance area/range starting around the 1066 area which is the .50 retracment (see previous chart) and up to the 1081 area, which is the .618 retracement area.
There are some intraday patterns that have completion areas at the 1077 area just above Fridays highs.
Friday closed with an AB=CD/Butterfly sell at the 1073 - 1075 area and has corrected about 10 points from these patterns in globex. If we see a further move up early today we will look for a shorting setup.
Friday was a narrow range day which can lead to range expansion, so we will also be watching for signs of expansion or a trend. If this occurs we will trade in the direction of that trend or expansion.
Have a great trading day and come visit us at www.tradingliveonline.com
Leslie

Yesterday the SP 500 traded up to the .50 retracement and had a high at 1068.50 which was in the area we had been looking for a sell opportunity. This is also in the area of a 127 extension.
If you look at the chart with the 127 highlighted you will see the triangle area that shows previous clustering, Any move up towards that area today will be into resistance and possibly fill the gap at 1071.
We will also be looking for a possible deeper correction down to buy into.
Come visit us at www.tradingliveonline.
Leslie Jouflas - founder Trading Live Online, LLC

The SP 500 Emini has held the weekly .382 retracement level at the 1006 area. Rally up from those lows is bringing the price back to a large gap area between 1059 - 1071. We will look for a short term (intraday) around that area, there is currentlly a 127 swing completing into that area. We will also look for a buying opportunity on pullbacks today.

Yesterday the SP 500 traded down to the .382 Fibonacci retracement on the Weekly chart (see chart from 6/30/2010 blog post).
In our Live Charts Forum we had buy patterns intraday that formed and completed into this area and we were able to buy and follow the run up yesterday.
This is an important support area now to watch.
Resistance should be in the 1030 - 1036 area and will watch for support on tests down. The next resistance area above 1030 - 1036 is in the 1044 area.
Trading for today we will look for range type trading.
These are short term areas to watch that we use to trade intraday from.
Please visit us at www.tradingliveonline.com
Have a great holiday weekend!
Leslie

The weekly chart of the SP 500 has a possible head and shoulder pattern forming. Price traded down to the lower end of the neckline. This is an important suppport area to keep an eye on. I have put the Fibonacci retracements from the March 2009 lows to the recent highs.
The head and shoulder pattern is confirmed if there is a decisive close on the weekly chart below the neckline.

The SP 500 broke the 1101 support area. There had been several previous tests of this area. When you are monitoring a support or resistance area you can usually find a counter trend play on the first, possiblly second test. After that you want to be aware of other market conditions that may lead to a break of that area.

If we use the “what once was support is now resistance and what was once resistance is now support theory”, the breaks of these areas can lead to trading opportunties. Today we will be watching for a shorting opportunity on a test at or near the 1101 area.
Have a great trading day.
Leslie
www.tradingliveonline.com

The Narrow Range Day from Friday led to range expansion; Friday’s range was 7.75 and yesterdays range was 24.25. The SP 500 Emini had a trend day down after a large gap up open. We want to watch the 1100 - 1101 area, that is an area of support. It was previously an area of resistance and market had an upside breakout above it. It was tested the middle of June and so far has held as support.
Another area to note is the highs made yesterday in the regular session were at the .50 retracement.
Today starts a 2 day FOMC meeting, will look for range trading today.