Mar 292012

I will keep it fairly short this week as I have been intensely focused on research, design and working out bugs of the new indicator project we are doing for NinjaTrader.  I get to working so intensely, it becomes unhealthy, and then I have to back off to get some balance and good health.

I have also been focusing in intraday trade lately, predominately in the Russell Futures.  This goes hand in hand with the new indicators.  I am extremely excited about this project and a bunch of amazingly innovative indicators that are like nothing you have ever seen.  Stay tuned in the coming months.  I am hoping to have this available as early as mid June.

I expect the market to head higher next week and see some volatility later in the week.

We have a variety of reports in the coming week including the FOMC minutes on Tuesday. Expect some volatility from this and a reiteration of positive tone for the markets. This may then be followed by some profit taking and volatility per the forecast.

The last few days have seen a southerly bias and this was combined this morning with a slightly bearish unemployment report. GDP came in as expected. We also have some reports tomorrow, so the day will not likely be a lazy Friday.  Most reports are pre-market so we may see a trend set up early in the day.

The average range of the S&P is around 16 or so points daily. This makes for fairly good intraday trading and is a bit of a range expansion following some testing lower that we have seen.

If we test below the 1380 low of last Friday, we could see lower as this is a low volume area that continues well down into the 1365 area.  I am not expecting to see this, but be aware it is there on your charts.  We did see a bit of a b formation on our charts today, and if we head lower tomorrow, it is possible the bias for next week could change over the weekend.  A close tomorrow below 1390 would be decidedly bearish.  A test of 1390 would be healthy.

On the bigger scale I will reiterate the S&P Emini futures going to the 1429 area at some point here.   Today's end of day rally went to 78% of the last wave on my 25 min chart. This is deeper than the previous retracement. This is somewhat bullish for now. Keep in mind though that the bigger trend is currently down (1/4th day). The next bigger trend from there is up (weekly).

That's all for now :-)


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