Spotting patterns is a MUST to trade, observation is so important. Here the trend is down. We have the cross of MA'S, but more importantly I believe a CORRECTION is still in vogue....so I'm lookg for short entry.
At 1288 I spoteed a double top (dashed line), also see the 50 EMA was at 1285 and trending down...that's where price stopped.
Price peaked out of the gate, these bastards ramped it up in pre mkt...and by 10 AM that was best price of day....to ME...and by 2 PM that smelled like more distribution....and a rally was not going to ensure much.
I also had a low risk entry with a defined break point.....so there was 8 SPX points....if using E MINI @$50 a point, even 2 contracts yields $800.....real excercise here is can you define the trend, can you find the areas where pivotal action will occur be it support or resistance.
Those buying the night before, or holding the weekend are, IMHO crazy and out and out gamblers....as you see the days action at least at open is determined in the pits while you are sleeping....and the futures give those who wish to manipulate all the leverage they need.
Anyone that thinks CNBC is the place to get their info from.....probably never agrees with me....they turn my stomach.
D
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