Last week I had mentioned we should go up this week. My prediction for the low was a bit higher than what actually came in. This is the reason I had stressed following the daily targets posted via Twitter, was the best way for me to be of service.
Much of the trading of late is news driven, and I believe a good portion of today's upward action was due to a failed missile test in N. Korea, FOMC, speaking engagements and reassurances by the fed of a continued loose money policy. Nothing quite like free money for the wealthy, heaven knows they need it. It is related to the divine right of kings, and we certainly don't want to mess with divine right.
Looking at the longer term charts, I am seeing we still remain inside last month's range and indicators are certainly on the up bias. The weekly however is more at the top of a cycle, so it is possible we may see some more downside to come. There was a uptick in unemployment reported this morning, and other news managed to eclipse any attention to it. This tendency to ignore the economic facts is a fascinating topic. But, I won't belabor that. I would like to mention, however that only one week this year has had (as much as) average volume. That's not that easy to accomplish, and is not exactly what you'd like to see if you are a long term bull. Charts posted below....
I worked today on code that will send our tweets automatically to the blog, Twitter and (hopefully) StockTwits. This will help me to be more focused around the open when I trade. My trading style is geared around the morning volatility and I am typically done for the day by 8AM my time- giving me resources to work on programming for the Nindicator project. Finishing trading in 1.5 hours or so each day turns trading into a means to an end as opposed to a lifestyle that many traders seem to turn it into.
My most recent work has pertained to code that enables the user to see order flow inside the market. This is a great advantage because you can literally see when orders at bid or ask are what I call, "eating" the standing orders. When this occurs, it shows imbalance and often occurs right before the move; giving you a heads up, before a move begins or during a move. I'd post a screenshot, but it is not quite done yet; hopefully next week.
For the coming week, I suspect we will see the market continue it's ascent for the first couple days and then we should see some profit taking.
Key levels for next week I am seeing are a cluster around the 1407-1409.50 area to the upside. To the downside, we have a key area around 1379 to 1382. The 1408 and 1378.50 areas also corresponds to a virgin points of control. So mark your charts at these areas. Particularly that lower one for tomorrow. We also close a gap at the 1389 area, so also mark this on your charts.
That is all I have for now. Keep an eye on the twitter feed for more immediate information on what the market is doing.
Wishing you the very best in the coming week!