Consolidation was in fact the key of today. Mixed markets made it a dificult trading day. I attempted to throw a coupld small trades in and got stopped out on the volatility in all of them, but luckily they were all small. The price went straight down the funnel and broke out lower. We It then hit a support level around 99.60 and is currently testing this level. I would not be suprised to see this level fall as Asian markets open. After this the next support is around 98.000 as shown below.
My game plan is to watch to see what happens with this support and in Asia. S&P futures are up from the market close right now which is favorable for tomorrow. Im hoping for the pullback tonight to the 98.000 range and that S&P futures continue to trend up. If this is the case Ill go in pretty heavy and set a stop around the 95.500 level. I suspect the bull run should continue for the rest of the month once it gets going and I want on! Watch the spiders close! There is an upward sloping support trend forming. It was penetrated a bit in August but that was when there was the problem with computer routing on the orders that caused the dagger of a candle. There also could be a morphed head and shoulders forming as well. The highlighted area is of particular concern. If we are going to make another run at the market it better cross that resistance level of 156.00. Upon breaking that we should break 157.50 and have another good leg up into January. Failure to break 156.00 (perhaps a retracement upon reching 152.50) will definately push this into a bear market at the turn of the year.