Use other indicators for a swing trade. I posted an RSI signal on the dailies, that's a better entry. You sold exactly where you should have bought.

RSI(14,D)<30  on SRS just triggered. It's a buy signal on daily charts, close to a bottom.

timwilson, How did you program the trend line on the StrategyDesk? Curious if that could be done.

http://blog.afraidtotrade.com/

Corey's daily post today hints on new highs on the $SPX based on the hidden strength of the acc/distribution indicator now versus January. Probably at least 30 points up on the $SPX from now, if similarity to  the past streaks of 6-9 up days in a row holds true.

I too bought SRS this am. Under 7.00 it's a bargain (close to the last low), and the price touched the lower trend line. The third touch is usually close to the bottom price, it could make one more low, but I am going to hold my position for a swing trade. With market being overbought as it is and the max pain numbers significantly lower, it's a good risk/reward trade for me.

Now that they have taken out the last known significant resistance, the game becomes interesting. They could either reverse  right here without making another up Monday -- they don't have to now! -- or they could make a new high about 4-6% higher than the January high. Either way, I don't see a reason to bring this market much higher now, and MA(20) on monthly charts could serve as a turning point, for example. I would not guess what they will do, but it's obvious that for them it's "mission accomplished". FWIW.

Matt, if past two months are any guide, MACD should form a higher low after stochastics have crossed. Are their any confirmations or positive divergences of a move above 1130 at that chart? Purely technically speaking.

Why be a bear? Because there are no buyers at this market (aside from the PPT), market is rising because short seller are compelled to cover their shorts and buy, not because there are genuine buyers at these elevated levels. Any removal of support leaves at least 1.5% drop on the indexes, that happens regularly. I will not sleep soundly with longs here, be they from set ups or otherwise. I am staying in cash now, waiting for the last known resistance to be overcome. Oblivion is blissful but expensive in the long run, risks are to the downside. Good luck!

It seems that targeting them is precisely the plan of buyers this week, whoever they are. They are damn close now to milk more money out of remaining live bears. This is brutal!

They are welcome to help posted trade ideas to go in our direction.

So far it's in its C wave up from an A-B-C correction. I am not sure that its recovery is not a mere short covering, despite its impressive looking acc/dist. index.

Do you have any theory for that indifference to the $USD index, which began in early December? My guess is that the American Fed (ie., domestic banks) is supporting the market here, and they don't care about the euro and other currencies. Or, it is the Chinese and Japanese Central Banks, who don't want to collapse their own markets, so they will support the US markets for as long as they can. Their pain threshold should come at 81.5, based on the most recent dollar action (quick drop from there). FWIW.

Peridot or anyone who knows EW: Is there any significance of an A-B-C up after a 5-wave move down? It strikes me as odd, unless followed by an A-B-C down, and then a 5-wave move up. I understand the chart is automatically generated...

Matt's image charts for the non-members are.

jroger, set yourself a system of various stochastics and watch them for a while, and you'll see the difference. There is no rule here, Matt uses them as he deems it fit. The difference is how much delay (or confirmation) you want to give before hopping on a trend.

rp, Do you mean "slope" down to confirm? I would guess a gap down tomorrow is in the works.

Matt, how does a system for trading futures help in trading market indexes? I am curious.

This could develop into a cup with a handle pattern.