ES Update

The ES's have maintained above the previous swing low and have now initially closed an hourly bar above the previously broken trend line. This is early bullish action that if followed through could lead us to a new high!

Mark

Russell Sequence 9

With the larger degree 38.2% Fibonacci projection hit it would be a great spot to take profit. Nothing wrong with hanging on longer but this normally would retrace somewhat before moving on higher! The way to beat the market is not with one blow, but with well timed jabs! In time the jabs will take down any giant! :)

Mark

Russell Sequence 7

Russell Sequence 5

Russell Sequence 3

Russell Sequence 1

The next several charts will show how to increment Fibonacci projections while day trading.

Mark

Russsel 2K Update

The Russell is also at a very interesting Fib area. It's met a 261.8% longer term day trading Fib w/in 1 tick and an even shorter term 423.6%. Often this will illicit a bounce. How big of a bounce will be determined soon enough!

Mark

ES Update

I'm looking for the retest of the bottom of this broken trend line. If we can get through it then it should be up and away! The Es's are still at a higher swing low so the upward motion is still intact. Keep an eye on the trendline. If its met with stiff resistance then we could reverse lower!

Mark

ES Update

Today's selloff was strong but on mediocre volume so if we can maintain above the level of 1331.75 its a good chance the we can start lifting in the globex session. If we break below then we'd be a little suspicious of the action! The thing that has me a little suspicious is the fact that we did a perfect 1:1 Fib ratio at today's high which is typically corrective in nature.

Mark

S&P Update

The possible ending diagonal on the S&P is in a perfect spot to make one last drive up to a new high if it can maintain above the trend line or the 1335.58 level. Any break below that could set off a deeper sell off.

Mark

Crude Oil - 05112011

From yestarday's report .. "This current (5th within the diagonal) should terminate and encounter resistance near the identified $104.65 price level before a minor correction is expected. We do anticipate this move to have 7 waves and those waves should terminate near the $106.75 price level. Short term price target is $104.65 with a stretch at $106.75. Support is down at the $101.70 price level. Once this move is completed we anticipate that crude oil will sell below $94.00 a barrel. "

Not much more to say.. Crude is heading below the $94.00 price level.. I believe the $104.65 level should hold now given the mechanics and harmonic relations..

--Tony

Metals - 05112011

Well.. as we noted in yestarday's report - "Since then silver has been carving out (like GOLD and many other commodities) a diagonal like pattern. Within this diagonal like pattern, we have 5 identifiable waves and we suspect that this move will terminate with 7+ waves. As we noted on Sunday, the next ideal timing target ties in with that of GOLD, 16 May, although we suspect that both GOLD and SILVER will see some selling pressure 11-12th before resuming to complete this apparent corrective ‘b’ wave. "

We were anticpating some selling pressure to come into the market for the 11-12th but I have to admit I was not expecting this deep of a sell-off..

In silver I'll be watch the low at $33.06 with keen interest... great day, done trading now...

--Tony

ES Active Fibs

The Fibs previously posted are still active and we appear to be entering into a correction. After this correction look for another drive to the upside!

Mark

Russell 2k

The Fibs previously posted on the Russell are still active. It looks to be entering a corrective wave and could get choppy today.

Mark

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Our subscribers will understand these charts! :)

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Russell 2K Diagonal ?

A few days ago we postulated that many markets had the overall look of being in a 5th wave ending diagonal. If the recent low can't be broken quickly that is becoming more and more a possibility. If that's the case then we could be setting up for a move to a new high if this low holds. Albeit, it'll be a terminal high. Either way, the near term action will determine what we should do. Let the market show its hand.

Mark

Russell 2K

The active Fibs on the Russell also act as a great proxy for the ES's. This is presently active and it looks like the next pop could afford a selling opportunity if we get s secondary lower high! It appears to be in a 4th wave presently.

Mark