This consolidation will lead to a breakout…
Thursday’s session wasn’t. Will Friday
be any different? Could be a rather exciting afternoon, we’ll have to wait and
see.
ES (+$50 per index point)
This chart of the S&P 500 and it’s sideways
coil pretty much sums up the week so far. Tuesday was the first session, and it
sold off from the opening bell for three hours. By midday, the ES settled into a
4.5pt or $275 total range sideways roll. If there has ever been a more dull
market period in the S&P since early 1999, I cannot recall sitting thru it.
The little blip lower on 3:00pm sell programs
yesterday dropped price action nearly 7pts within minutes, a wider range than
had been witnessed for nearly three sessions. Says it all about absence of
volume, volatility and lack of deliberate accumulation – distribution action
this week.
Summation
Next Tuesday forward begins a fresh slate for funds and money
managers alike. Whether this market rallies to new recent highs or drops
straight down to unexpected lows is unknown and unpredictable by any man on
earth. We do know that consolidations lead to breakouts, and this overall
two-month sideways coil will soon break in a big-time dramatic way. When the
next trend move begins, we’ll ride it to the end. Our charts will tell us what
to do… we merely need to follow along accordingly.
Sometimes, trading really is simple as that!
Trade To Win
Austin P
(Weekend Outlook trend-view section…
open access)
Austin Passamonte is a full-time
professional trader who specializes in E-mini stock index futures, equity
options and commodity markets.
Mr. Passamonte’s trading approach uses proprietary chart patterns found on an
intraday basis. Austin trades privately in the Finger Lakes region of New York.