Afternoon,

The DOW was down 205 points, the S&P 500 down almost 17 points, while the NAZ spent most of the day up 10 to 20 points and the Russell 2000 did the same. What does all of this mean??? Very frustrating, cross-current markets. As I have been saying recently, when that situation develops, trading becomes treacherous as traders try to decide which index will win out. During times like these, it is important to be extremely selective in deciding what trades to take. The first part of the day saw large moves up and down and did not actually have a valid set-up until 12:09 pm CST. There was a trader’s trick set-up at that time after a trend line break above the 56 EMA. The long entry was 716.40. Here is the chart for trade 1.

Trade 1

Click on chart to enlarge.

The market traded in wide ranges for the next 2 hours but with no set-ups. At 14:00 pm CST there was a trader’s trick set-up after a trend line break above the 56 EMA. The trade was up 1.20 points  before turning around and stopping out for a 2 point loss. Here is the chart for trade 2.

Trade 2

Click on chart to enlarge.

I know that the market has been difficult to trade recently. The market always goes through this type of behavior at tops and bottoms in the market, as traders try to determine which side of the market they want to be on. Time will take care of the situation. Be patient and be careful. Fishing in these waters can be hazardous to your wealth. Be safe.

Best regards,

Ron

This is not a solicitation to buy or sell. 
There is a risk in any investment