I need to revise what I said yesterday about what to expect from the market today. The best way to do that is to refer you to Ron Walkers public chart list and his video for yesterday’s market. You can find this chart and others at http://stockcharts.com/def/servlet/Favorites.CServlet?obj=ID1926808&cmd=show[s237471733]&disp=O and his video for Monday August 15 at http://www.thechartpatterntrader.com/.
Basically we are going to see an extremely short term pullback from yesterdays close to the 1180 area before heading higher. I believe that we are going to form what is called a head fake. A head fake is where price pushes above a level of resistance, pulls back below it, and then pushes through it. This is very common around moving averages. I did not think this was going to happen but futures are implying that this is going to happen over the next couple of days.
If you look at Mr. Walkers 60 min chart for yesterday he breaks down trend lines and other levels of resistance. There is further explanation of these trends lines as well as other analysis that points to the 1180 area before we move higher. The green marks on this chart are mine but the rest are Ron’s. I fully suggest that you visit his site http://www.thechartpatterntrader.com/ and help support his site as it is an excellent learning tool that I use daily in case I miss something like I did last night.
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