Quick Notes: Yesterday the major indices closed with bearish engulfing candles which led to gap down today on the SPX/QQQ which thus far have produced island tops with both indices moving (or filling) their open gaps from last week's advance which indicates some trepidation in front of tomorrow's FOMC decision. Lately, it's been one choppy mess for the indices and below the surface there are now many broken charts. From purely a historical perspective for December trading stats the 10th trading day (today) tends to mark the low point with a rally into year end. This coming Saturday marks the start of the Holiday party season - the question is if we will have happy or grumpy partygoers. We shall soon have our answer. Remain prudent in this backdrop and continue to trade the chart in front of you.
Note: Several previous ideas on watchlist remain valid but simply have not yet triggered so continue to re-examine each night. Consider making a fresh top 10-12 setups each night and put on front page along with existing trades. My advice is to keep your total ideas to a manageable number. Lastly, it's best to wait at times for valid setups to form - sometimes less is more.
Please take a moment to look at the trade ideas.