As i posted in my morning thoughts, an hourly close above SPX 1484 would cause the market to challenge the next zone of resitance, which currently lies between SPX 1505 and 1512. The ideal target would be SPX 1512. But my experience has been, when the message boards are all abuzz with the same targets, it generally gets undershot or vastly overshot.
It was a good daytrading day on the long side. As for the short swing setup that i was expecting, it just did not materialize.
This market is very strong. The NYSE breadth MCO made another new highs today. This is telling us in no uncertain terms that any pullback that comes along should be bought. Remember for a swing long, we need a selloff, just like a swing short requires a rally. The selloff could be a shallow one in terms of price, but needs to be deep in terms of oscillators. Until that occurs, going swing long at these levels is a sure recipe for a whipsaw. Based on my indicators, we are somewhere around 80-90% done for this hourly swing. Tommorow 10:30 Est could generate some short setup. We'll see...
With all the hoopla out there, the daily trend on SPX still remains down. The hourly and 120-min trends are up, which is what is driving this swing. Blindly shorting a market whose 120-min trend is up, just because the daily trend is down, is plain dangerous. Patience is required here for shorts.
For now, i will daytrade the long side and will be on a lookout to short for a swing trade, when the setup arrives. I will post it real-time here, when that happens.
Good luck.
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